Ansoff’s Matrix
¨
Market Penetration is
a strategy for company
growth by increasing sales
of current products to current
market segments without
changing the product
¤
¤
¤
Increase sales to current
users
Attract users of competition
Convince non users of the
product
¨
Market Development
is a strategy for company
growth by identifying
and developing new
market segments for
current products
¤
¤
¤
Develop new markets in
the same area
Develop more distribution
channels
Develop new markets in
other areas
¨
Product Development
is a strategy for company
growth by offering
modified or new products
to current market
segments
¤
¤
¤
Improve or add on current
product features
Improve on current product
quality
Develop new product in the
same category
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Integration
n
n
n
¤
Pros
n
n
¤
Backward Integration
Forward integration
Horizontal
Access to scarce resources of
supply
Tighter control over its value
delivery network
Cons
n
n
Risk inherent in committing
substantial resources in one
business.
Investment incurred often offsets
the additional profitability
¨
Concentric (related)
Diversification
¤
occurs when a firm internally
develops or acquires another
business that may or may not
have customers in common
with its current businesses but
that might contribute to
internal synergy such sharing
production facilities or
marketing and distribution
skills.
¨
Conglomerate (Unrelated) Diversification involves two businesses that have
no commonalities. Reasons for engaging in such strategy may be:
¤
¤
¤
Decrease in demand on core company businesses.
Company has more cash than it needs to expand its current business
Targeted growth is not achieved by other strategies
+
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AUC Vision
¤
¤
Our vision is to be a world class
university internationally
recognized for its leadership and
excellence in teaching, research,
creative expression, and service.
We will build on our existing
strengths to become the leading
university in the Middle East and
the destination of choice for
students and faculty from around
the world seeking in-depth cultural
exposure combined with
outstanding academic programs,
cutting edge research, and an
ethically engaged, diverse
community of scholars.
¨
¨
AUC management center’s
mission "to foster the acquisition and
dissemination of business and management
knowledge and practices, for top and
middle managerial levels, in an effort to
improve global competitiveness of national
and regional communities”
To fulfill its mission the Management
Center:
¤
¤
¤
¤
¤
Allies with international institutions to
guarantee the transfer of up-todate global issues
Conduct high quality educational and
professional development programs
Involve instructors of academic excellence
and extensive professional backgrounds
Continuously update the programs to
accommodate changes in the
global training needs
Expand its reach to cover Egypt and the
Middle East
¨
¨
A market opportunity is an area
of buyer need and interest that a
company has a high probability
of profitably satisfying.
There are three main sources of
market opportunities.
1.
2.
3.
The first is to offer something
that is in short supply.
The second is to supply an
existing product or service in a
new or differentiated way
The third is to offer a unique
and innovative product or
service
¨
An environmental
threat is a challenge
posed by an
unfavorable trend or
development that, in
the absence of
defensive marketing
action, would lead to
lower sales or profit.
The failure to analyze
the external environment
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¨
¨
Each business needs to evaluate
its internal strengths and
weaknesses.
Clearly, the business doesn’t have
to correct all its weaknesses, nor
should it gloat about all its
strengths.
The big question is whether it
should limit itself to those
opportunities for which it
possesses the required strengths
or consider those that might
require it to find or develop new
strengths.
¨
Most business units pursue a mix of objectives, including
profitability, sales growth, and market share
improvement. Objectives should meet four criteria:
They must be arranged hierarchically, from most to least
important.
¤ Objectives should be quantitative whenever possible.
¤ Goals should be realistic.
¤ Objectives must be consistent. It s not possible to maximize
sales and profits simultaneously.
¤ In short; goals should be SMART
¤
¨
¨
Marketing strategies serve
as the fundamental
underpinning of marketing
plans designed to fill
market needs and reach
marketing.
Porter generic strategies
describe the different
overall business strategies
¨
¨
Cost Leadership is a strategy,
by which a business offers an
average product at a low cost
to the broadest possible
market. Economies of scale
result in cost savings, partially
passed to consumers.
Cost Focus is a strategy, by
which a business offers an
average product at a low cost
to a specific customer group.
¨
Product Differentiation is a strategy
that focuses on offering a unique
product to the broadest possible
market. The product offering
necessitates continuous innovation in
light of the highly competitive market
forces.
¨
Differentiation Focus is a strategy that
focuses on offering a unique product to
a specific customer group. The customer
relationship largely depends on the
uniqueness of the product and the way
the customer is being served.
¨
¨
¨
Executive summary
Situation analysis
Marketing strategy
Segmentation
¤ Targeting
¤ Offering and value
proposition
¤ Positioning and
differentiation
¨
Marketing tactics
Product development
¤ Pricing
¤ Distribution
¤ Promotion
¤
¤
¨
¨
Financial projection
Implementation control