Use appropriate tools to develop strategic options for an organization Ansoff Matrix:
The Ansoff Growth matrix is marketing planning tool that helps a business determine its product and market growth strategy. Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets. The output from the Ansoff product/market matrix is a series of suggested growth strategies which set the direction for the business strategy. These are described below:
It’s a growth strategy for an existing business to focus on selling existing products in existing market. It has four main objectives. For Nokia * Nokia should maintain the market share (if can’t increase) for current products by advertisement, competitive pricing strategies and sales promotions. * Secure dominance on growth market.
* Restructure the mature market by driving out the competitor. Nokia should decrease it prices that much, so market become worst for the competitor. * Increase usage by existing customers – for example by introducing loyalty schemes to increase confidence in the existing costumer. Market Development:
It’s a growth strategy for a business to focus in the new market. Nokia should start providing its existing products in the new country, market with current products. Make the packing of the products more attractive, different pricing policies.
It’s a growth strategy for business to introduce new products in existing market. Nokia should have to work on it to launch new products with more features and quality. For successful product development in market emphasis on * Research and development
* Get the full knowledge of costumer (costumer need)
* Be the first (innovation)
It’s a growth strategy to introduce new products in new market. It’s a very risky strategy because of new market. Nokia has to do diversification, at least give a chance to luck. Differentiation:
In the differentiation focus strategy, a business aims to differentiate within just one or a small number of target market segments. The special customer needs of the segment mean that there are opportunities to provide products that are clearly different from competitors who may be targeting a broader group of customers. In the case of NOKIA, this strategy might work, if they concentrate on small segment rather than broader group like student. They can give the membership with their products to student of some informative websites, for which they have to pay for study or completion of study tasks. Or Nokia can give some other complimentary products like calculator, college bag etc. Cost leadership:
With this strategy, the objective is to become the lowest-cost producer in the industry. The traditional method to achieve this objective is to produce on a large scale which enables the business to exploit economies of scale. Nokia is already well known in third world countries regarding lowest cost and good quality products. They have to more concentrate on this aspect because Samsung and Sony Ericson are also the main competitor with low rates and proving their self as a quality product manufacturer.
Mintzberg provides five definitions of strategy
Strategy is a plan - some sort of consciously intended course of action, a guideline (or set of guidelines) to deal with a situation. By this definition strategies have two essential characteristics: they are made in advance of the actions to which they apply, and they are developed consciously and purposefully.
As plan, a strategy can be a ploy too; really just a specific tactic intended to outmaneuver an opponent or competitor.
If strategies can be intended (whether as general plans or specific ploys), they can also be realised. In other words,...
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