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J D Wetherspoon: Ansoff Matrix Business Strategy

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Submitted By jnmchireka2002
Words 629
Pages 3
Using ANSOFF’s Matrics business model the four possible strategies which organisations may adopt are-

1- Market penetration occurs when the company or organisation tries to sell more of its current or existing products to its existing markets through greater promotional efforts or vigorously advertisings. In the end the organisation will be benefiting from a increase in annual turnover and sales. This is the cheapest strategies of all Ansoff’s business strategic models. It also encourages companies to stay on existing market. There were a lot of competitors in this market but this strategy help JD Weatherspoon to reduce competition from rivalry.

2- Market development this happens when the company or organisation tries to sell its existing products in the new market or segment, for example if a Scottish organisation tries to enter into regional or global market to sell their existing products. This also helps the organisation to increase its base by attracting new Customers and increase its market share and portfolio. Favourable economic conditions and social culture changes force JD to adopt this strategy.

3- Product development this type of strategy occurs when the organisation starts to offer new products to the existing customer, so by bringing new products to the market, the organisation will be also attracting new customers. This also helps to keep its customers attracted to the organisation and its products e.g. Xbox 360 which has introduced Xbox 360 +kinetic improving the quality and and strength of the product and increasing product range for the organisation. JD Weatherspoon went on to adopt this strategy to keep up with the changes in technology and often fiercely competitive environment to try to keep ahead with competition in the market.

4- Diversification it involves new products and markets, This is when the organisation

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