What strategic options might Mark Bollard consider and why?
The Ansoff matrix framework provides four basic directions for a firm to decide on its strategic directions and option. Using the Ansoff matrix, we will explore the strategic directions that Bollard can consider during his period at the helm of Marks and Spencer plc. From the Ansoff matrix, Marks and Spencer plc had already previously demonstrated a few strategic directions. Product development was shown back in year 2000 when they introduced a joint venture with designer Davies to bring in brand Per Una. This was an example of delivering new products to their existing market. Another strategic direction Marks and Spencer plc demonstrated was diversification when they launched the food concept in their own stores as well as collaborations in other convenience stores in 2003. Market penetration was seen as well in 2006 when they make sure of marketing to increase their market share with their current food product range. They educate their customers that it was not just food, it was Marks and Spencer food. All these are examples of how strategic options were made before in Marks and Spencer according to Ansoff. Moving forward, following the Ansoff matrix, here are some of the pros and cons if Bollard consider market penetration as his strategic option. The advantage of conducting market penetration also means having greater shares. This implies increase of bargaining buyers and suppliers power according to Porter’s five forces. By having market penetration, Marks and Spencer will be able to have greater economies of scale too. To demonstrate market penetration, Bollard will have to work on its marketing and re-educate its consumers to see value in their products such as womenswear. The disadvantage of going into market penetration will be provoking retaliation from competitors such as Next, Oasis and Gap as growing shares in the same market will be at the expense of other players. This may inflict price...
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