Ansoff matrix
Ansoff matrix
Ansoff matrix is a theory through which organisations can develop suitable strategies for their business growth. The theory consists of four different fields such as market development, diversification, market penetration and product development. Based on this theory, an organisation can develop their business growth effectively. Thus, the four fields of business development that are included in the theory are as follows (Cleberg, 2019).
Source: (Cleberg, 2019)
Market penetration:
This is the first and most popularly used strategy that businesses use for their market growth. Mainly, this strategy focuses on winning new market shares in the same market with persisting products. The primary aim of this strategic process is to enhance the market share of an organisation with less probability of risk. As the amount of probable risk is low in this strategy, the prospect of growth opportunities is also low in it.
Market development:
After the market penetration comes to the market development strategy. This is the next level of strategy that organisations can implement for their business growth. Mainly, the market penetration strategy focuses on extending the new markets for the company with existing products. New markets can be a new country or new target customer groups. Generally, small changes are being made to the existing products for meeting the needs of the new markets (Kukartsev et al., 2019).
Product development:
Product development is one of the great ways through which organisations can effectively meet customer needs and develop their business growth. This strategy is all about replacing the old products or introducing a fresh product variant within an existing customer base. The main advantage of this strategy is the brand value that the organisation has already in the market supports it to enrich its business development process.
Diversification:
This is the final stage of strategies included in the Ansoff matrix theory. Generally, vast numbers of new or start-up organisations follow this strategy for developing their business growth effectively. Under these strategies, organisations provide new and innovative products for their customers to enrich their customer base and business growth. There are huge risks in the process if the products get failed in the market. But on the other hand, if the products achieve success in the market, then there is a huge potential for success related to this process (Chereau and Meschi, 2018).
As per the mentioned case study, a UK-based ruling intellectual property business named Global Plant Genetics is opting for acquiring new markets in South East Asia to sell their existing products, i.e. strawberries. Thus, in regards to this context, it can be stated that the organisation is following the market development strategies among the strategies included in the Ansoff matrix for enhancing its business growth. For initiating this plan, the organisation is focusing on gaining deep knowledge about the strawberry variants that used to grow in South East Asia. Based on this, the organisation will sketch out their business expansion plans and pricing strategies in the South East Asian market. Further, the organisation is also focusing on detecting and measuring its market opportunities in the South East Asian countries (globalplantgenetics, 2022).
Project plan for Global Plant Genetics
Project charter:
As per the highlighted case study, Global Plant Genetics is trying to venture their product, i.e., strawberry, into the new targeted markets of South East Asia. Before expanding into the new market, the organisation is trying to make a suitable project plan for gaining success in this new market entry venture. Thus, the main focus of this project plan is to position the organisation and its product in the South East Asian market successfully. Further, the plan will also aim to benefit the organisation with a better sales margin for the strawberry products grown by the company. The project will therefore aim to improve the sales margin of the organisation by at least 20 per cent in the coming year by venturing into the new South East Asian market (Hatten, 2018).
Statement of work:
Global Plant Genetics is opting for venturing their product (Strawberry) into the new markets of South East Asia. As per the strategies, the project manager has to develop and represent a suitable plan which will include all those steps that the organisation will follow for positioning its strawberry products in the South East Asian market.
Work Breakdown Structure:
Gantt chart:
Scope of this project plan
Venturing into new markets:
According to the project aim, Global Plant Genetics is a UK-based organisation that rules the intellectual property business of the UK. The organisation is currently planning to expand their business growth in the new markets. For initiating that venture, the firm is targeting the South East Asian market and its customer base. Thus, while making the project plan, the organisation will need to do deep and extensive market research for understanding the needs of the customers. Further, with the help of extensive research, the organisation will also gain suitable information about the variants of strawberries grown in South East Asia. Based on those facts and information, Global Plant Genetics will be able to develop suitable marketing plans for positioning itself in the South East Asian markets. Hiring suitable and skilled employees for this brand expansion will help the organisation to gain success in this project (Coleman, 2022).
Involving the digital platforms:
The organisation can involve the digital media platforms, especially the social media platforms, for marketing their products in the South East Asian market. Moreover, the organisation can also initiate promotional offers for its products to attract customers through social media (Linton, 2019).
Merging with e-delivery services:
Further, they can also merge with the e-commerce food delivery services for selling their products to the customers through the online platforms. This will help the company to reach a broad customer base suitably in the new markets of South East Asia.
Cost of venturing into new markets:
| Particulars | Expenses(£) |
| Initiation phase | 500 |
| Planning the project | 1100 |
| Recruitment | 400 |
| Promotional expenses | 600 |
| Miscellaneous expenses | 500 |
| Total expenses | 3100 |
Project initiation time:
Approximately by following this project plan, the organisation Global Plant Genetics will take mostly six consecutive months for getting venture into the new markets of South East Asia successfully (Hatten, 2018).
Risks associated with this project plan
Commonly, while initiating any new business development projects, organisations generally face some risks in the process. Therefore, some of the potential risks that Global Plant Genetics will follow for venturing into this project are mentioned in the following.
Over budget risks:
As per the above analysis, it has been understood there are issues of high labour cost present in the South East Asian markets. Thus, due to this threat, Global Plant Genetics may face an over-budget risk while initiating this project.
Merging delays:
As mentioned earlier, the organisation Global Plant Genetics can get merged with e-commerce delivery services present in South East Asia for positioning their product in that market successfully. Thus, there is a probability that it may take more time than it was measured earlier in the project plan due to any delay in official works and others.
Higher market competitions:
The above SWOT analysis has already shown that the South East Asian markets have huge competition. These competitive factors can act as a risk for the organisation Global Plant Genetics while initiating its new market entry project successfully (Dominguez, 2018).
Recommendations
According to the above discussion, the organisation Global Plant Genetics is planning to opt for a business development strategy. Considering this plan, the organisation is sketching out an effective market development plan for venturing their products (Strawberry) into the new markets of South East Asia. Further, while making the project plan, the organisation may face some potential threats and risks which may hinder its business growth strategies. Thus, for combatting those issues and risks, some suitable recommendations are being recommended for the organisation Global Plant Genetics. Such recommendations are as follows.
Extra fund initiation:
The organisation may face issues due to the high labour costs present in the South East Asian markets while venturing their product (strawberry) into that market. In relation to those issues, the organisation needs to initiate extra funds in their business capitals, utilising which they can overcome the high labour cost hindrances.
Suitable pricing strategy:
As the market competition is intense in the South East Asian fruit selling market, the organisation Global Plant Genetics may face issues due to it their new market entry strategies. Thus, the organisation needs to maintain suitable pricing strategies for attracting a wide customer base in the South East Asian markets. This will further help the organisation to gain success in its new market entry strategies (Gartenstein, 2017).
Effective merging plans:
While merging with other e-delivery service organisations, Global Plant Genetics may face delaying issues that will hinder their business development plan in the South East Asian market as well. Thus, for resolving these problems, the organisation needs to make better and more attractive plans which can also benefit the targeted merging companies. This will further drive those e-delivery service organisations to get merged into this business venture with Global Plant Genetics willingly (Hatten, 2018).
References
Books and journals
Chereau, P. and Meschi, P.X., (2018). Choosing a Growth Strategy. In Strategic Consulting (pp. 81-110). Palgrave Macmillan, Cham.
Cleberg, C., (2019). Strategic Success: The Ansoff Matrix vs. The Balanced Scorecard.
Dominguez, N., (2018). SME internationalisation strategies: Innovation to conquer new markets. John Wiley & Sons.
Hatten, T.S., (2018). Small business management: Creating a sustainable competitive advantage. SAGE Publications.
Kukartsev, V.V., Fedorova, N.V., Tynchenko, V.S., Danilchenko, Y.V., Eremeev, D.V. and Boyko, A.A., (2019), August. The analysis of methods for developing the marketing strategies in agribusiness. In IOP Conference Series: Earth and Environmental Science (Vol. 315, No. 2, p. 022107). IOP Publishing.