ansoﬀ matrix - aba · pdf filethis aspect of the ansoﬀ matrix concentrates on protec ng...

Protect/build

This aspect of the Ansoff Matrix concentrates on protec ng and building thecompany’s present posi on, either by amalgama on of current products or by growingthe company’s market share in an exis ng market.

Learner ques on

How can an organisa on increase market penetra on of an exis ng product?

Ansoff Matrix

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Product development

This aspect of the Ansoff Matrix concentrates on delivering new products to anexis ng market, either for the survival of the organisa on or to take advantage ofopportuni es that have opened up through a changing market.

Learner ques on

How do car manufacturers introduce new products into an exis ng market?

Ansoff Matrix



Market development

This aspect of the Ansoff Matrix concentrates on breaking into new markets withexis ng products when opportuni es within the current market have been exhausted.

Learner ques on

What different strategies could be adopted to sell exis ng products into new markets?

Ansoff Matrix



Diversifica on

This aspect of the Ansoff Matrix concentrates on moving the company away from itscurrent product por olio and markets, by selling new products into new markets toincrease revenue.

Learner ques on

Give an example of a company who has successfully engaged in diversifica on?

Ansoff Matrix



Problem child

These are products with low market share in a high growth market. This may meanthat the product actually costs the company money and so work needs to beundertaken to maximise their poten al.

Learner ques on

Suggest the ac vi es an organisa on can undertake to move a product fromproblem child to star?

Boston Consul ng Group Matrix

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Star

These are high share products opera ng in high growth markets. Due to the fact thatthey are in a high growth market they will require significant investment, although thefact that they are in a large market could mean that economies of scale could be sought.

Learner ques on

What steps can an organisa on take to prevent a star from becoming a dog, ratherthan conver ng to a cash cow?




Dog

These are products have low market share in low growth markets. These productsare in decline and should not be invested in as they will not make a profit.

Learner ques on

What op ons does an organisa on have for those products that are classified as dogs?




Cash cow

These are products with high market share opera ng in low growth markets. Theseproducts are usually established and require li le investment to perform well andmake a profit. The profit gained from these products can be transferred to ‘star’ products.

Learner ques on

Apply the BCG Matrix to your organisa on, which products in your por olio wouldbe the cash cow, stars, problem child or dogs?




Bo leneck

This aspect of the Kraljic Matrix iden fies products that can only be acquired from alimited source of supply or where there is a high degree of supply risk, meaning thatsuppliers will need to be managed in order to secure delivery. This area of the matrix istypically characterised by bespoke/rolling contracts.

Learner ques on

What approaches could be taken here to ensure that suppliers iden fied in thebo leneck quadrant don't cause problems for the organisa on?

Kraljic Matrix

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Strategic

This aspect of the Kraljic Matrix iden fies products that are crucial to the firm andare characterised by high value and high supply risk, meaning that suppliers will needto be closely managed. This area of the matrix is typically characterised by strategicpartnering rela onships.

Learner ques on

What techniques and approaches can be used to manage suppliers that are in thestrategic quadrant?

Kraljic Matrix



Rou ne

This aspect of the Kraljic Matrix iden fies products that are easy to acquire and alsohave a rela vely low impact in the event they are not delivered. The buyer of theseproducts should aim to implement standardised ordering procedures and improve efficiency.This area of the matrix is typically characterised by volume/blanket agreements.

Learner ques on

Outline real life example products for your organisa on that fit within the fourquadrants of the matrix.

Kraljic Matrix



Leverage

This aspect of the Kraljic Matrix iden fies products that are easy to buy and couldresult in significant cost savings due to high volume/values. This area of the matrixgenerally has many suppliers with quality that is standardised therefore encouragingfrequent tendering.

Learner ques on

Iden fy and jus fy an approach to purchasing for each of the four quadrants, forexample blanket ordering, spot buying or tendering.

Kraljic Matrix



Self-actualisa on

This is the highest level of Maslow’s Hierarchy of Needs and maintains that once anindividual has reached this they will have realised their full poten al in following theirpersonal beliefs and values.

Learner ques on

What does Maslow argue self-actualisa on means? Can every individual eventuallyachieve self-actualisa on?

Maslow’s Hierarchy of Needs

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Esteem

These needs include self-respect in addi on to gaining the esteem of others.

Learner ques on

What other needs would fit into this aspect of Maslow's hierarchy?




Love / belonging

These needs, o en referred to as social needs , are the need for friends, socialac vi es and the giving and receiving of love.

Learner ques on

Why has Maslow included this aspect in his hierarchy?




Safety

These needs are about safety and security and include predictability and protec onfrom danger or depriva on.

Learner ques on

Why has Maslow included this aspect in his hierarchy?




Physiological

These are basic needs that are required, such as food, water and sleep.

Learner ques on

Why has Maslow placed this aspect as the most important human need?




Threat of new entrants

This element of the model relates to the compe ve pressures exerted by newentrants to a market and the extent to which this can be prevented by the factorsthat new entrants to the market will need to overcome to be successful, also knownas barriers to entry.

Learner ques on

Nike currently enjoys a great degree of brand recogni on and loyalty and it will bedifficult for a new company to match its level.

Q. What factors should Nike look at to determine the threat of new entrants and thepoten al impact to their brand?

Porter’s 5 Forces

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Bargaining power of customers

This element of the model looks at where supply exceeds demand from customers,or where the demand is heavily consolidated meaning addi onal pressures will beplaced upon the market. This will increase compe on and reduce prices unless thecustomers’ bargaining power can be negated.

Learner ques on

Bargaining power of customers is low as Nike has a very strong brand image andholds an innova ve product por olio.

Q. What factors should Nike look at to determine customer power and what other op onsdo customers have?

Porter’s 5 Forces



Bargaining power of suppliers

This element of the model looks at where demand exceeds supply and so thesupply-base will have greater bargaining power over buyers, par cularly if there are noalterna ve sources of supply.

Learner ques on

Nike’s footwear produc on is largely conducted in Vietnam, China and Indonesia andcomprises of around 42%, 30%, and 26% of total Nike brand footwear produc on.Both interna onal issues and currency effects could be a cause for concern for Nike.

Q. What is Nike’s bargaining power in this instance? Q. What factors should Nike look at to determine supplier power?

Porter’s 5 Forces



Threat of subs tutes

This element of the model relates to alterna ve products and services that increasethe compe ve pressure on a market as it provides a greater opportunity forcustomers to buy alterna ves.

Learner ques on

The worldwide demand for athle c footwear, apparel and equipment is expected togrow in the future as customers cannot subs tute these products.

Q. What factors should Nike look at to determine the threat of subs tute products?

Porter’s 5 Forces



Market rivalry

This element of the model relates to compe on in the market and the fact that it isdependant on the satura on and dynamism of the market.

Learner ques on

The global market for athle c footwear, apparel and equipment is characterised byintense compe on, with the presence of a large number of companies such as Nike,Puma, Adidas, New Balance, HiTech, etc.

Q. How can rivalry amongst industry players affect industry profits?

Porter’s 5 Forces



Introduc on phase

This stage is characterised by heavy investment and is the point at which productsare launched into the marketplace. The norm in this phase is for slow sales growthaccompanied by some losses.

Learner ques on

What are the characteris cs of each stage of the product life cycle?

Product Life Cycle

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Growth phase

During this stage consumers have become aware of the product and have started tobuy it. There will be a significant increase in demand and profits, but new compe torsmay also be a racted into the same industry.

Learner ques on

Do all products go through every stage in the life cycle? If not, why not?

Product Life Cycle



Maturity phase

This stage sees decreased demand as the result of a sales plateau. This is o encaused by compe tors taking larger shares of the market and so alterna ve survivalstrategies need to be developed. The sales plateau could be short-lived or enduring, forexample, Pepsi.

Learner ques on

How can a manufacturer maintain a compe ve advantage during the maturityphase of their product?

Product Life Cycle



Decline phase

This stage sees a significant reduc on in demand and with that a decline in sales andprofits. Whilst lowest cost produc on will s ll be available whilst there is volume, adecision needs to be made as to whether the product is s ll viable.

Learner ques on

Is it s ll possible for companies to make some profit during the decline phase and ifso, how?

Product Life Cycle



Develop/nuture

Accounts in this area of the matrix bring li le in terms of value to a supplier but arevery a rac ve in terms of their poten al. O en a great deal of focus is placed ondeveloping this aspect of customer rela onships as they can be seen as the supplier’s future.

Learner ques on

Outline reasons why a buyer might be a rac ve to a supplier?

Supplier Preferencing Matrix

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Core/protect

Accounts in this area of the matrix are both high value and a rac ve. They are seenas core business and the supplier will place emphasis on levels of service in order todefend their posi on, whilst a emp ng to increase business.

Learner ques on

Iden fy why a buyer may move from core to exploitable for a supplier?




Nuisance

Organisa ons in this area of the matrix bring li le in terms of value and poten aland so the supplier might be expected to show li le interest or support and to beac vely making efforts to withdraw.

Learner ques on

Why might an organisa on be in the nuisance quadrant of the matrix?




Exploit

Organisa ons in this area of the matrix may have a high volume of sales from anaccount that is not considered to be a rac ve. In this case, the supplier mayconcentrate on gaining short-term benefits due to the fact that retaining a longer termrela onship is not considered important.

Learner ques on

Provide examples of organisa ons that might fit into this quadrant?




ansoﬀ matrix - aba · pdf filethis aspect of the ansoﬀ matrix concentrates on protec ng...

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