The growth strategies are part of Ansoff’s matrix. The first one is the market penetration which is low risk strategy of using low pricing in the short term as a means of gaining entry into a new market or to increase market share or sales volume in an existing market. The second one is product development, this is where the company develops new features on a well-known brand and this is a medium risk strategy. The third is market development, this is where the company launches the same product but in another place, for example global. The last one is diversification, this is a high risk strategy this is when they enter a new market with a new product. Apple use mostly product development, they use these in their IPhone, the IPhone well known …show more content…
They also use market development as they have sold IPhones in more than 100 countries, this is an advantage because there are more places for IPhone to make a profit. The disadvantage of product development is that it can get costly because resources are required by the Research and Development department of the business; a lot of experiments and tests are also performed. Secondly, product development involves a risk of whether the consumers will like the new features that have been developed/added to the new/existing product. Tesco use the market penetration as the sell the same products to the same market, they don’t develop the products they sell the same general merchandise and groceries. An advantage of this is that by selling the existing products to the existing market it will speed up the growth of business because people will continuously buy them. A disadvantage of market penetration is the price-conscious customer may only make purchases based on how much the product costs while placing less emphasis on quality or brand recognition. These consumers generally are not loyal to a product or brand unless it continuously offers the lowest …show more content…
Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. Branding is important for customers because the customer knows that the company they are buying from if there were two phones at the same price and same product but one was apple and the other were a unknown company, people would buy the apple because it is apple and they have shown their products to be of high quality. Also people would buy from Tesco because their branding is that there groceries are cheap and of high quality. Apple have built their brand up and their position. When people buy an apple product, they know the product will be of a high quality, that is the message that apple are trying to convey. One of the ways they have done this is that they train staff to present a specific image, so when you go to an apple store you will see that the staff carry with them IPads and other apple devices. Tesco have built their brand and positon to have the finest own-labeled products. They have done this buy making more Tesco brands. Brand extension is a common method of launching a new product by using an existing brand name on a new product in a different category. Apple use brand extensions because apple have launched many products under the same brand ‘apple’. Tesco use
Apple has garnered a competitive advantage through all aspects of the supply chain. On the production front, Apple has made many high-priced
A brand is utilized by a company to differentiate its products from others in the market. Some techniques for accomplishing this are through the use of distinguishing logos, names, color schemes, and slogans. An effective branding strategy is one of the most important components for gaining a significant advantage in a progressive market. Basically, a company brand is its promise to its customers about what can be expected from its product and how it differentiates from the competitors. The branding strategy is the part of the marketing plan that explains how and to whom the company proposes on conveying its brand messages. It will also explain where the company plans to advertise and what it will publicize both visually and verbally (Williams, 2013). Home Depot’s marketing plan will contain domestic and global branding strategies and will be a collaboration of brand messages from both Home Depot and Reach the Top®.
Marketing strategies are based on the 4 P’s or Product, Price, Promotion and Place or Distribution Channel. This section will briefly look into the Product and Pricing strategy of Apple and will illustrate various factors how it has been capable of sustaining competitive advantages in times of extreme competition.
Ansoff's matrix provides a very simple but very effective focus for considering different options for growth, and shows whether it is better to find new customers for existing products, offer more products to the existing consumer, or stay with existing products and attempt to gain a greater share of the market.
Tesco has been particularly successful because of its powerful brand. It has a reputation for value, low prices and for being customer focused. Its brand and associations have helped the company to expand into new sectors and markets. Tesco has also been strong in public relations, advertising and building profile in catchment areas on a local level. This local approach to marketing appears to be a key driver for success. Tesco has a good range of products, including own label products. It seeks to provide excellent customer service, and ensure high levels of customer satisfaction.
The Ansoff Matrix was designed by Igor Ansoff. It is a growth based matrix with can increase market share and sales. The Ansoff Matrix classifies strategies whether they are new or existing markets or new or existing products. It includes 4 quadrants which are the Market penetration, Product development, Market development, and Diversification.
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.
A company must identify its strengths and weaknesses in order to develop growth. Downsizing products is more important than developing new products. A company must be able to identify where there weak markets are at. Times change and so do products. The products that are less profitable or simply aged are the ones that must be downsized in order to make way for a different, more innovative market. When developing growth strategies a company must use the product/market expansion grid. First the company has to figure out whether they can have better market penetration, second they must consider looking for market possibilities for current products. Third they must develop their products into innovative products that people can’t live without having. Lastly they need to be diverse with their company, therefore expanding and including different features to the company could draw more attention from different
So, for the future, she must implement his strategies to continue and improve his efficacy and efficiency. To propose achievable strategies, we will use Ansoff matrix. This tool allows to classify and explain the different growth strategies for a company. Ansoff 's Matrix is also known as the market options matrix (Lynch, 2009, p.313) and is designed to identify “the product and market options available to the organization, including the possibility of withdrawal and movement into unrelated markets”. It is represented diagrammatically as follows.
Apple can adopt the strategy to portray a picture of a not so conducive less profitable market, which could discourage new entrants from picking that path as they will be demotivated by the low return on investment resulting from low profitability levels. In order for apple to create a niche for t numerous products, it needs to adopt and implement such bold strategies of defense to protect their interests and continue to be profitable and successful (Ideavist, 2011). Entry of a new company into the technology sector would spell doom for most companies already struggling for market share as better priced and reliable products could imply consumers would shift their preference to the new entrant leading to a negative volume of sales stir for most already established companies. Another strategy that could be employed as part of Apple’s defense could be the pre-entry strategies that make it even harder for new entrants to compete and enter into the sector and this involve continuous improvement for their products, covering
The case looks at prescriptive strategy as applied to multi-product group of companies. Unilever is based in over a hundred countries where multiple products are being made in each. However, the market is mature which means that growth is stagnant and innovation is almost non-existent. In order to improve on growth and sales, the strategies that are needed look at how to come up with new products that have high profit margins and penetrate new markets. The prescriptive approach was used to come with a strategy to improve growth and profit. In order to improve on innovation, both the prescriptive and emergent strategies can be used since both support innovation. From the case study, not much profit was made when the ‘Path to Growth’ strategy was first implemented (2001-2004). The strategy was initially based on cost cutting. There was a need to also build volumes through existing portfolio of branded products through innovation and marketing. By focusing on increasing sales in developing countries where growth prospects were high and increasing investment in personal care products where profit margins were higher, it was possible to improve the profit portfolio.
The Apple Inc. can use this tool when they want to increase their sales either by expanding product or by entering a new market. With the help of this grid, market expansion strategy is determined.
Branding is also a way to build an important company asset, which is a good reputation. Whether a company has no reputation, or a less than stellar reputation, branding can help change that. Branding can build an expectation about the company services or products, and can encourage the company to maintain that expectation, or exceed them, bringing better products and services to the market place.
When Apple saw that the iPhone market was mature and stable, the organization introduced other innovative products to create a new market (Ritson, 2013). This is the philosophy of the planning school of strategy and it is all about engaging an existing market while forecasting the future market.
Economic growth is one of the most important fields in economics. In current generation economic is developing well. Economic growth is really important to country and for the world as well. Economic are one of the identity for country because it shows a country development and attraction for other countries (F, Peter. 2014). For example well economic develop such as Singapore, Dubai, New York, and Japan. These countries are well develop and maintaining their economic growths. Economic growths are really important because higher average incomes enables consumers to enjoy more goods and services. Then, lower unemployment with higher output and positive economic growth firms tend to utilize more workers creating more employment. Enhanced public