ANSOFF MATRIX

Ansoff Matrix

Ansoffs Matrix

Introduction

Cirque wants to grow its business in the year 1980 and 1990, when the circus industry was losing its share in the market. Ansoff's matrix is ??a popular tool for planning the growth of the product, company and is used by marketers who have set themselves the goal of growth. Matrix Ansoff offers four different choices to achieve strategic objectives.

MARKETS

Existing

New

Existing

Market Penetration

Product Development

New

Market Development

Product/Market Diversification

Market Penetration Strategy

Current entertainment products are distributed to current markets to current consumers. This means that Cirque have to pull out of this market more through better penetration, for example, using better promotion, Reposition the brand, etc. do not apply the product modification, or not looking for new consumers. The Cirque should implement a strategy of deep penetration into the market when it decides to increase its market share by providing existing entertainment products or services.

Market Development Strategy

The entertainment shows (products) developed by Cirque are distributed to new markets. There is no change in the entertainment strategy, but they are promoted into new markets or in new sectors. To strengthen the competitive position requires different actions depending on what stage of life cycle is the market: growth, maturity or decline. The growing market for firms is desirable to keep pace with the growth in the industry.

Product Development Strategy

At the current markets Cirque should bring new entertainment methodologies. The old way of making entertainments are replaced by more modern versions, technological advancements, and then promoted among current consumers. The development of the goods can be a strategic area of growth in mature markets where existing product groups do not fully utilize the available opportunities.

For technological innovation may require a close collaboration with the developers of industrial customers.

Diversification Strategy

Implement strategy of diversification of the company makes a number of reasons, including the ability to reduce input costs by identifying and controlling new sources of raw materials and unique resource. One of the most common causes of diversification is the desire of companies to leave the stagnating markets, or markets in which to obtain high profits no longer possible.

Sometimes the companies to make scientific discoveries that are not of practical value to their existing range of products and services, so they start looking for a new use for his discoveries. This situation occurs when a firm produces new products for new markets. There are two types of diversification:

Related diversification (related)

Diversification (unrelated)

Related diversification occurs when a company expands the products related to their current activities, such as Cirque circus provides better methods that could bring a revolutionary change in the field of entertainment (within the circus industry).

Diversification unrelated lies in the fact that the company has no experience in a market in which they want to enter the new product. For example, if the Cirque is circus firm and it enters in the market of Cars.

When choosing a strategy beyond the typical strategies: cost reduction, differentiation, and focus - Cirque needs a deeper, more detailed ...