Question

research and share four examples corresponding to the four options of Ansoff's Matrix. The following video will help you understand it better.   https://www.youtube.com/watch?v=4dKliWrCywM  

The company could be a hypothetical or an existing one in any industry of your choice.  But you have to discuss how it can choose to go for market penetration, market development, product development or diversification.

For example, if you love sports and would like to take Nike as an example - think how Nike could go ahead with the four options.

Your contribution to this discussion session will be graded based on:

1) relevance of your examples

2) how well you put across your points.

Make sure, you use formal business terminology and avoid any dialectical terms. You are free to share any video that you find relevant to the case.

Answer 1

I will be going ahead with the company Skechers. Skechers is an american lifestyle and footwear company. It started in early 90's however due to competition in the market nowadays, it can start to increase its sales and ultimately market share and profit, than it can go ahead with these options as below:-

1) Market Penetration - Market penetration means selling of goods at a specific market in very high volume. This may be due to cheaper prices, more advertisement etc. Skechers can move forward to penetrate the big cities footwear market by reducing its prices and bringing new schemes such as exchange of old footwer with new one on discounted prices. They can penetrate the small cities market by using strategy of selling the goods at their production cost without any profits at an earlier stages.

2) Market Development - Market development is a Know growth strategy that identifies and develops new market segments for current products. A market development strategy targets non-buying customers in currently targeted segments. In the small cities market where people are not buying its products or not at all buying footwears, Skechers can target them to purchase their goods using advertisements, using strategy of selling the goods at their production cost without any profits at an earlier stages, telling them the benefits of using their products etc.

Product Development - Once their goods are getting the boost and are getting sold in high volumes and consumers are ready to buy their products at any cost, they can start developing new products with new designs, new styles, new fabric, newer prices.

Diversification - Skechers is a footwear brand and once it has reached its pinnacle, it does not need to completely diversify into new product. They can introduce new products along with old products.