November 1-5
Dear students, for this weekly forum we will discuss about: ANSOFF MATRIX
You must answer one or both questions with a response of at least 200 words and using at least one reference in APA style.
A) From the 4 types of strategies, which one do you consider is the most difficult to manage and why?
B) How do you consider this particular matrix can help the businesses to develop new products or even to know when is the correct moment to pull out a product? Provide an example if it is possible.
Remember that our deadline is Friday, November 5th before 11:59 pm. :)
PUT YOUR NAME AND LAST NAME IN YOUR ANSWER.
Renata Medina
ResponderBorrarFrom the 4 types of strategies, which one do you consider is the most difficult to manage and why?
I think that one of the most difficult strategies to handle is the "product development strategy", since it is a strategy that you must keep among your priorities and that makes it easier to get confused, make mistakes or not know how to handle it well. This strategy refers to the methods and actions used to bring new products to a market or modify existing products to create new business, the importance of this strategy is that it uses market research to develop a plan for success in selling products. Some barriers or difficulties that you may present throughout this strategy are: Trade-offs, product economics, global competition, time pressure, dynamic environment, budget, validation overhead, bureaucracy, ideation, market viability, product roadmap problems, workflow management, product engineering issues, pricing policy, the pace of innovation. As you can see, there are different difficulties that you can face and there are many which makes it very difficult to handle this important strategy for your company.
https://www.intechopen.com/chapters/63867
For this weekly forum I’ll be talking about the 4 types of strategies of Ansoff Matrix and which one I consider is the most difficult.
ResponderBorrarFirst of all, what is Ansoff Matrix? Also called the Product/Market Expansion Grid, is a tool related with the need of understanding the strategies related with the market and the type of products they develop or they want to relaunch. In other words is a tool used by firms to analyze and plan their strategies for growth. The matrix shows four strategies that can be used to help a firm grow and also analyzes the risk associated with each strategy. This four are:
1. Market Penetration: This focuses on increasing sales of existing products to an existing market.
2. Product Development: Focuses on introducing new products to an existing market.
3. Market Development: This strategy focuses on entering a new market using existing products.
4. Diversification: Focuses on entering a new market with the introduction of new products.
I think the most difficult is the diversification strategy. This is the riskiest because you are introducing a completely new market with a completely new product that you cannot repeat with other companies. It may offer the greatest potential for increased revenues, as it opens up an entirely new revenue stream for the company. Karyme Gastelum
CFI. (n.d.). Ansoff Matrix. 2021, of CFI Reference from: https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/
In this forum I will talk about which strategy I consider more difficult to handle and why
ResponderBorrarFirst, it is important to mention that the 4 strategies are Market penetration, product development, market development and diversification. Personally, I think that the most difficult strategy to handle is diversification, since it is often difficult to start developing in new markets and new products because the majority of time the costumers prefer products that are recognizable; For a company to diversify it is necessary to understand how to develop a product and how the market works, they need more technology that means that the company takes more risk. One great example is one of the strategies that is conglomerate diversification which is the riskiest strategy because it enters completely new unknown and competitive markets
Although it is something difficult to do, I think it is worth taking the risk since it promotes revenue growth, brand recognition and helps to maximize their resources if they are underused. It also helps organizational business to grow, It opens up new possibilities for the organization, by adopting this strategy the organization not only diversifies its products offerings in the target markets but also expands its business horizons. The strategy helps the organization to increase sales volume and revenues while keeping costs to minimum.
Santyendra. (2014). Diversification Strategy. November 4, 2021 , de ispat guru web site : https://www.ispatguru.com/diversification-strategy/
Valeria Garcia Lozano
I'll discuss which method I believe is the most challenging to manage and why.
ResponderBorrarFirst and foremost, market penetration, product development, market development, and diversification are the four tactics. Diversification is, in my opinion, the most difficult strategy to manage, because it is often difficult to begin developing in new markets and new products because customers prefer recognizable products; for a company to diversify, it is necessary to understand how to develop a product and how the market works; they also require more technology, which means that the c One of the tactics t is a fantastic illustration. Diversification requires a corporation to understand how to build a product and how the market operates; it also necessitates the use of more technology, which means the company must take on more risk. One of the techniques is conglomerate diversification, which is the riskiest option since it involves entering wholly new and competitive industries.
Francisco Arrigunaga
No references needed, my dad was the source of information
A) From the 4 types of strategies, which one do you consider is the most difficult to manage and why?
ResponderBorrarSTRATEGY DIVERSIFICATION
I consider that the strategy of diversification is the most difficult to manage because This corporate strategy enables the entity to enter into a new market segment which it does not already operate in. The decision to diversify can prove to be a challenging decision for the entity as it can lead to extraordinary rewards with risks.
I found that the entities entirely involved in profit-making segments will enjoy profit maximization. However, a diversified entity will lose out due to having limited investment in the specific segment. Therefore, it limits the growth opportunities for an entity. Also diversifying into a new market segment will demand new skill sets. Lack of expertise in the new field can prove to be a setback for the entity.A mismanaged diversification or excessive ambition can lead to a company over expanding into too many new directions at the same time. In such a case, all old and new sectors of the entity will suffer due to insufficient resources and lack of attention.A widely diversified company will not be able to respond quickly to market changes. The focus on the operations will be limited, thereby limiting the innovation within the entity.
Ana Victoria De la Paz
Gaille, B. (2017, 14 enero). 12 Diversification Strategy Pros and Cons. BrandonGaille.Com. https://brandongaille.com/12-diversification-strategy-pros-and-cons/
In my opinion, of the 4 strategies, I consider that the most complicated could be the product development strategy. It seems to me that this is the one that could be the most complicated since it is this stage that will define if your product will be successful or not. This process is the one that has to develop the methods and techniques that will be used in the development of the product and that is why they must be very accurate. Likewise in terms of the product idea because many times we want to sell something that is already on the market, so this is the stage where you look for a strategy to see how you can make that product that you want to make and that is already on the market, unique and better. The Ansoff matrix is a tool used by firms to analyze and plan their strategies for growth. This particular matrix helps you determine strategies in 4 areas to sell more existing products or services to existing customers. This matrix also allows companies to better understand the risks and challenges presented by each strategy. It is a way to analyze more deeply and in detail the strategies that your company can develop to excel in the market and increase your sales. An example of a company that has implemented the ansoff matrix is Adidas. Adidas as the years have gone by has entered the international markets, and thanks to this matrix has been expanding everywhere and even today continues to expand into new global markets.
ResponderBorrarReferences:
Corporate Finance Institute. (2020, July 6). Ansoff Matrix. Retrieved November 5, 2021, from https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/
Smartdraw. (n.d.). Ansoff Matrix - Learn Everything About Ansoff Matrix Models. Retrieved November 5, 2021, from https://www.smartdraw.com/ansoff-matrix/
Catalina Salmon
Rodrigo Menendez Gaber
ResponderBorrar3°A
5/11/21
Ansoff Matrix
The ansoff matrix is a method that help you to evaluate the situation of a business in some market, this by four different strategies, the marketing penetration strategy, market development, product development and diversification, each one different, for different situations and with differents risks.
But well once we already know what’s Ansoff Matrix, we can already talk about which is the most difficult strategy, this for me is diversification, for a lot of people is the riskiest one, this because a company is expanding theirselves to a unknown market, with the intention to grow and maybe the experience in another market they think they will easily success there but not always, getting into a market you don’t even know anything about is a difficult task, the clients are always different and they ask for things that maybe you don’t know they need, also as your first time in the market you don’t know what kind of marketing to do, leaving at the side that you’re competing with brands with decades of experience in the market, leaving you with less experience and with a producir that may be worst than them or worst in the most important aspects.
https://enciclopediaeconomica.com/matriz-de-ansoff/
Diversification strategy is considered high risk not only because of the inherent risks associated with developing new products, but also because of the business’s lack of experience working within the new market. When a company chooses to diversify, they knowingly put themselves in a position of great uncertainty.
ResponderBorrarAdditionally, diversification often requires significant expansion of human and financial resources, which can sometimes have a detrimental effect on the allocation of resources in the core industries.
For these reasons, it is recommended that a company should only pursue a diversification strategy when the current product or current market no longer offers opportunities for further growth. It’s critical for companies to thoroughly evaluate the risks and assess the likelihood of achieving a profitable outcome before deciding to pursue diversification.
A diversification must be a well thought out step for an entity. It can boost the growth of the firm thereby leading it towards wealth maximization. However, it can also prove to be a costly failure for certain entities.
Sebastián Guzmán Aizpuru
Pilcher, R. (2020, 13 March). What is Diversification Strategy? Lighter Capital. https://www.lightercapital.com/blog/what-is-diversification-strategy-definition-examples/#:%7E:text=The%20risks%20of%20diversification%20strategy%20Unlike%20market%20penetration,lack%20of%20experience%20working%20within%20the%20new%20market.
Luis Eduardo Diaz Valle
ResponderBorrarPersonally, I think that the strategy with the most risk among the four strategies is the diversification one because it includes a new product. A diversification strategy is the strategy that an organization adopts for the development of its business. This strategy involves widening the scope of the organization across different products and market sectors. The strategy is to enter a new market or industry which the organization is not currently in, whilst also creating a new product for the new market.
Diversification strategy is a form of growth strategy which helps the organizational business to grow. It opens new possibilities for the organization. By adopting this strategy, the organization not only diversifies its products offerings in the target markets but also expands its business horizons. The strategy helps the organization to increase sales volume and revenues while keeping costs to minimum.
To sum up, I think that diversification is a very risky strategy which involves one or several new products or services apart from the original one. Even thought it is very risky, it comes with great rewards if done properly and effectively. Diversification is a very common strategy used in companies which have reached a comfortable place in the market.
Ispatguru.com. 2021. Diversification Strategy – IspatGuru. [online] Available at: [Accessed 6 November 2021].
I think the most difficult strategy is the diversification strategy, this means that the business develops and creates new products in new markets, and I think it is the most difficult because of the development of the new products and not only that but to expand to a new market that the business doesn’t know and hasn’t worked with can be risky.
ResponderBorrarFor a company or business to be able to diversify it is needed a significant amount of human and financial resources that is why it is recommended that the business only diversify if their products or market no longer offers them opportunities of growth.
But putting aside the risks and difficulties if this strategy is used correctly, it can bring a very good benefit to the business like increasing their profits, minimize the risk of an industry turndown, boost brand image and it can help the company protect themselves from strong competition.
An example of a type of diversification is the horizontal diversification that basically is adding products or services that are not related to what you currently offer.
Companies should try other growth strategies before this one because is the most complex and risky, so before trying something that might harm your business is better to use strategies that are more likely to work and be effective.
Reference: Pilcher, R. (2020, March 13). What is Diversification Strategy? (Definition and Examples). Lighter Capital. Retrieved November 6, 2021, from https://www.lightercapital.com/blog/what-is-diversification-strategy-definition-examples/
Marianne Meimaroglou
Diversification is a strategy used to expand market share or enter new markets by launching or acquiring new products. It allows a company to grow by expanding market share in an existing market or by developing a market presence. In essence, diversification involves innovation and market disruption.
ResponderBorrarA company can diversify in several ways, including acquiring a new business, adding a new market segment or selling new products or services.
Adding a new product or service or entering a new market segment offers the opportunity for exponential growth and brand recognition. But at the same time, the disadvantages of diversification include startup costs and the added overhead that will be required to achieve increased sales goals. You must synthesize mountains of data including internal-rate-of-return calculations, market forecasts, and competitive assessments and all that under intense time pressure. To complicate matters, diversification as a corporate strategy goes in and out of vogue on a regular basis. In other words, there is little conventional wisdom to guide managers as they consider a move that could greatly increase shareholder value or seriously damage it, so if you are thinking about using this strategy for your business you have to be aware it is not an easy game, you need to study your possibilities carefully.
Marksides, C. M. (n.d.). To Diversify or Not To Diversify. Harvard Business Review. Retrieved November 4, 2021, from https://hbr.org/1997/11/to-diversify-or-not-to-diversify
Valeria Hidalgo
A) What is Diversification? A risk management technique that mixes a wide variety of investments within a portfolio. A collection of businesses under one corporate umbrella.
ResponderBorrarDiversification and Corporate Strategy A company is diversified when it is in two or more lines of business Strategy-making in a diversified company is a bigger picture exercise than crafting a strategy for a single line-of-business A diversified company needs a multi-industry, multi- business strategy. A strategic action plan must be developed for several different businesses competing in diverse industry environments
The Major Issues Diversification decisions involve two basic issues: How attractive are our current businesses? With these businesses, what is our performance outlook for “X” years in the future? Can the firm establish a competitive advantage within the industry to be entered? (i.e. what synergies exist between the core business and the new business?)
Basic Issues Poor understanding of how diversification activities will “fit” or be coordinated with existing businesses. Differences in organizational cultures Should new business be standalone operation or should it be merged into one of the existing businesses? Problems associated with internal development of new businesses. -Most problems due to considerable time and investment required to launch new business. -Difficult to assess the risks associated with new investment opportunity.
When to Stop Diversifying When you achieve acceptable levels of growth and profitability Before complexity outstrips management's ability to manage.
Thierry Labrousse
https://es.slideshare.net/PavanTiwari1/strategic-issues-in-diversification
According to Omnia Retail in Pricing Strategies, "the market penetration strategy market penetration strategy is the one that allow a brand to take its existing product or service to an already thriving market with high demand and begin drawing-in a larger share of the entire market, eventually draining competitors of opportunity and money." So, in my opinion it is the harder strategy, because of all the things that are involved such as Use Dynamic Pricing, Add Distribution Channels, Target Specific Locations, Improve Products, Enter New Geographical Markets, Create a Barrier to Entry, Change a Design, Make It Easier to Buy, Create and Recruit Established Advocates, Educate the Market. And comparing them with the others strategies, this one is the most the difficult to manage and to reach, due to the hard work to do, and all the variances like the competences and the market volatility. And for the e-commerce, according to Omnia Retail in Pricing Strategies "Ecommerce retailers don’t need to reinvent the wheel regarding the marketing channel. In 2021, it’s more than well established that the opportunity to offer products and services online is there. However, how can e-tailers compete with large competitors such as Amazon? The answer is better understanding market penetration and developing the best marketing penetration strategies to gain a larger share of a targeted market."
ResponderBorrarDaniel Chávez Morales
Retail, O. (2021, 23 febrero). Understanding and Using Market Penetration Strategies. Omnia Retail. https://www.omniaretail.com/blog/using-market-penetration-strategies
Product development strategy, in my opinion this would be the most difficult since when it comes to getting a new product you have to look at all kinds of aspects both in the competition and in that the article that we are going to sell is an article that people buy due to Since we are releasing a product, we have to make it known and that people decide to buy it since they were attracted to it or because they need this product for their daily lives.
ResponderBorrarIt can help us when we are going to get our new product since it is about the strategies that we must follow so that our product is a product that people know and this explains us that we must know when we have to put our products on sale so that these are famous and people buy it because other people have spoken well of it and it is a great advantage that you have to have against our competitors.
The Anasoff Matrix helps us choose the opportunities in which we can put a product on sale and make it popular, taking into account each of the strategies that it offers us so that our product and our brand go to the top.
Christopher Campos. (2021). Anasoff Matrix. 2021, de Prepa Anáhuac Mérida Merida Sitio web: https://sway.office.com/ZObsnMwbI5xthvgg?ref=Link
BorrarThe most difficult strategy to pull off is the one that includes the most risk, as they say, "the higher you climb the harder you fall" which applies to the diversification strategy. Having a new product or product line that caters to a new customer sounds good on paper but it all depends on the execution. Say when a company like Youtube adds a new function to the site, such as being able to direct message other users which got removed eventually, or the integration it had for a while with Google Plus where many users complained about it so they scratch it off. We have two examples of bad outcomes here, it never catches on or it isn't well received. However, this particular matrix can work better for companies when talking about promoting themselves. What do I mean by this? Yes, it's pretty clear that many successful stories came from companies that were able to break their mold and expand into unmarked territory, it's something that's been going on since we began to create products. What I'm getting at is that it can also work for a company to reach the public's eyes, jump at them immediately, i. e. the KFC Console. Presented a silly tech gadget with a real working system but also had a chicken warming chamber inside of it. It got many people talking and hundreds of videos and articles speaking about it even suggesting it could be a better console than the current generation, even if it was "clickbait". You get to see more and more brands getting into markets they don't seem to fit in with but they forcefully break the barrier, is it by making silly gadgets? Yes, and what's more important, it works. It gets people talking, there's a huge spike in Google Trends where you can see this same activity. Favorably using social media even if you get here and there your detractors at the end of it you're appealing to the widest market of consumers and non-consumers.
ResponderBorrarEmiliano Bañuelos Rojas
Kain, E. (2021). 5 Things You Really Need To Know About The KFC Console. Forbes. https://www.forbes.com/sites/erikkain/2021/02/26/5-things-you-really-need-to-know-about-the-kfc-console/?sh=6898c1f312dd
I think that the most difficult strategy is diversification because it deals with the production of new products, most of the time, within the same line of those that already existed. For example, an apple soft drink brand can expand its productive range by making the same drink with lemon, orange flavors ... then that makes the brand risk something that may be successful or may fail. Many times, people think that if the brand releases a new product that product will be successful, but the truth is that not because even if it is a well-known brand and all its products are famous and successful, the reality is that brands will always having a product that is unsuccessful and fails at first or outright does not succeed at any time.
ResponderBorrarWhen the brand releases a new product, they go through the process of creating the product based on the society (which exists and which does not), creativity of the new product image, they also go through the trial and error stage, the pre-demonstrations to society ... using this strategy means that the brand is risking many things and is risking many things as well.
Choosing Strategies for Change. (2014, 1 agosto). Harvard Business Review. https://hbr.org/2008/07/choosing-strategies-for-change
Karla Sofía Hernández Lira
I think that from the 4 types of strategies, the diversification strategy is the most difficult to manage because this strategy consists of creating different goods and services that can match different markets in a separate way, or maybe at the same time. It is riskier than the other strategies since it requires more outlay in terms of product development and advertising, yo need to create equally good products, for markets to be interested in more, which can fail due to product diversity, how can you ensure that different markets will want all your products, and not others, you would need to have a good and competitive product.
ResponderBorrarOne of the main reasons this strategy is the most likely to fail is because businesses don’t have the right strategies in place, they need to be on their game and have the resources, contacts, and capabilities to move to different markets and succeed, all this because companies need to leave their comfort zone, and most of the times they are not able to come back, or have a good outcome, because this is a lot of hard work, since once you go out, you need to be prepared for al the challenges in the world of business
Kepka, A. (s. f.). What Is Diversification Strategy? (plus Examples) | Fundsquire. Fundsquire Australia. Recuperado 5 de noviembre de 2021, de https://fundsquire.com.au/diversification-strategy-examples/
Este comentario ha sido eliminado por el autor.
ResponderBorrarMarket penetration is the commercial strategy implemented by a company, in order to increase the distribution of its products, increase its share of participation in the business and confront its competitors. So I consider that the most complicated strategy is the market penetration since it is usually the starting point for any young or new company that just begins and wants to be able to make an expansion in the market. They do this with the aim of making themselves known in the market and positioning themselves, with the aim of being at a higher level that is worthy of competing with other businesses. The reason why I think it is difficult is because it requires a lot of effort and patience because literally your business will depend on it and many times entrepreneurs who just start their business usually stop trying as they become discouraged by not seeing immediate results at their business. Large investments are also required as it is a bigger step that the company wants to take and it is important to know that the results will not be immediate and the investments will be completed in a long time. So that’s why I consider this strategy the most difficult to manage as a business.
ResponderBorrarMariana Ramírez Cámara
Pilcher, R. (2020, 13 marzo). What Is Market Penetration Strategy? (Definition and Examples). Lighter Capital. Recuperado 5 de noviembre de 2021, de https://www.lightercapital.com/blog/what-is-market-penetration-strategy-definition-examples/