GROWTH STRATEGY

MATRIX
PRESENTED BY: GROUP 01
ADITI KUMARI
JANVI GIRI
PRAJJWAL DEB
SAURAV KUMAR
SOUMYASHREE PANDA
SWAGAT SAMANTARAY
INTRODUCTION

• ALSO KNOWN AS ANSOFF MATRIX OR

PRODUCT/MARKET EXPANSION GRID.

• DEVELOPED IN 1957.
• UNDERSTANDING THE RISK INHERENT IN
GROWING BUSINESS.

• IMPROVING THE ORGANIZATION PRODUCT OR

SERVICES.
COCA COLA: A CASE OVERVIEW

• OBJECTIVES
• USE OF ANSOFF MATRIX AS ITS MEASURE
STRATEGY

• THE COMPONENTS OF ANSOFF MATRIX

(INTENSIVE GROWTH, INTEGRATIVE GROWTH
AND DIVERSIFICATION)
CATEGORIES OF GROWTH STRATEGY
 1. INTENSIVE GROWTH

MARKET DEVELOPMENT
o FOCUSES ON ENTERING NEW MARKET USING
EXISTING PRODUCTS.
o POSSIBLE APPROACHES:
• CATERING TO A DIFFERENT CUSTOMER
SEGMENT
• ENTERING INTO A NEW DOMESTIC MARKET
( EXPENDING REGIONALLY).
• ENTERING INTO A FOREIGN MARKET
(EXPENDING INTERNATIONALLY).
MARKET PENETRATION:
o FOCUSES ON INCREASING SALES OF
INCREASING PRODUCTS TO AN EXISTING
MARKET.
o POSSIBLE APPROACHES:
• DECREASING PRICES TO ATTRACT
NEW CUSTOMERS.
• INCREASING PROMOTION AND
DISTRIBUTION EFFORTS.
• ACQUIRING A COMPETITOR IN
THE SAME MARKET PLACE.
PRODUCT DEVELOPMENT:
o FOCUSES ON INTRODUCING NEW PRODUCTS TO AN
EXISTING MARKET.
o POSSIBLE APPROACHES:
• INVESTING IN R&D TO DEVELOP NEW
PRODUCTS TO CATER TO THE EXISTING MARKET.
• ACQUIRING A COMPETITOR’S PRODUCT AND
MERGING RESOURCES TO CREATE A NEW
PRODUCT THAT BETTER MEETS THE NEED OF
THE EXISTING MARKET.
• FORMING STRATEGIC PARTNERSHIPS WITH
OTHER FIRMS TO GAIN ACCESS TO EACH
PARTNER’S DISTRIBUTION CHANNELS OR BRAND.
2. INTEGRATIVE GROWTH

oHORIZONTAL INTEGRATION:
• INTEGRATION AT THE SAME LEVEL OR STAGE OF BUSINESS
IN THE SAME INDUSTRY.

o VERTICAL INTEGRATION:
• INTEGRATION OF DIFFERENT LEVELS / STAGES OF BUSINESS
IN THE SAME INDUSTRY .
• IT MAY BE BACKWARD INTEGRATION OR FORWARD
INTEGRATION.
 3. DIVERSIFICATION

o FOCUSES ON ENTERING A NEW MARKET WITH A

INTRODUCTION OF NEW PRODUCTS.
o RELATED DIVERSIFICATION:
• PRESENCE OF POTENTIAL SYNERGIES TO BE
REALIZED BETWEEN THE EXISTING BUSINESS AND
THE NEW PRODUCT/MARKET.
o UNRELATED DIVERSIFICATION:
• NO POTENTIAL SYNERGIES TO BE REALIZED
BETWEEN THE EXISTING BUSINESS AND THE NEW
PRODUCT/MARKET.
 CONCLUSION
• OUT OF ALL THE STRAGIES MENTIONED,
MARKET PENETRATION IS THE LEAST RISKY
WHILE DIVERSIFICATION IS THE RISKIEST.

• THEREFORE, THE COCA COLA COMPANY IS A

RELATIVELY RISK-AVERSE COMPANY, WHEN
COMPARED WITH A FIRM LIKE THE VIRGIN
GROUP.