Assignment 2

Assignment 2

Introduction

In the past few decades, the technology and software introduced have made American's life easier and simpler. Using postal services for sending emails are now obsolete. People can pay their bills online and get the news letter through emails. American's was things to be done as quickly and effectively as possible (John Cal Massengale).

However, home phones are still valued by some of the people in different regions of the world. Some of the customers have to pay for the home phone, to make the cable bills cheaper even if they do not use the home phones regularly. The people of rural areas suffer in such cases. The prices for the internet and telephone service rises because it is difficult for the telephone companies to meet needs of few against many. This means that, in rural areas they require miles of landline underground, which reaches a few users in rural areas.

Discussion

To reposition the landline in the mind of potential customer, first we need to develop and effective strategy of product. To better understand the product, it is important to understand Asnoff's matrix which is also known as product development matrix.

Ansoff matrix

Igor Ansoff presented this matrix first time in 1957 in his publication in Harvard business review. However, this matrix is more than 50 years old, but it is found effective in defining strategic directions that a firm can adopt as an analytical tool while focusing on a very simple framework, defined by Ansoff. Its framework is very simple and consists of 2X2 matrix describing the options available to organisation to increase the profitability and revenue (Meldrum & McDonald, 2007).

The matrix based on logic and steps to be taken by organisation to decide for expanding business. The axis defines product and markets relationship with new or existing scenario as described by (Meldrum & McDonald, 2007):

Focusing on existing product and current markets.

Developing new products for current markets.

Expanding product availability in new markets.

Broadening the horizons with new product and new markets.

For detailed understanding figure 1 is provided below.



In above matrix the market penetration is not important for the strategy that is to be adopted for repositioning the landline. The main focus will be on the other three quadrants of product development.

The main focus will be on introducing the landline to the new markets or un-served areas. As discussed in assignment 1 the main focus is to provide landline to the regions where previously landline is not provided such as Asian and African rural areas and urban areas where landline is not provided previously.

In addition to market development, other focus of the landline to provide new services to existing customers and to those left using landline. Various other services such as high speed internet, TV and other services will be offered to previous customers in addition to traditional landline. This will help in boosting the revenue of product.

Third focus of the product is related to diversification. In this strategy, new services will also be offered to ...