Ansoff applied to apple inc essay

Essay Topic: Apple computers, Competitive advantage,

Paper type: Technology and calculating,

Words: 1018 | Published: 12.06.19 | Views: 284 | Download now

The Ansoff Product-Market Growth Matrix is a promotion created by Igor Ansoff. The Ansoff matrix is a marketing tool which allows marketers to consider ways to grow business via existing and/or new releases in existing and/or new markets. The ansoff matrix helps corporations decide what course of action needs to be taken presented current efficiency.

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The Ansoff’s matrix provides a very simple although very effective target for considering different options intended for growth, and shows be it better to discover new customers for existing products, offer even more products towards the existing consumer, or keep with existing companies attempt to gain a greater reveal of the industry.

Each section of Ansoff’s matrix shows a strategy which will be used in moments with what you are carrying out. There are several possible product/market combinations: Marketplace development, Market Penetration, Variation and Product Development. This can be displayed in the number below.

Industry Development:

An established product in the marketplace may be tweaked or targeted to a different customer section, as a strategy to earn more revenue to get the firm.

For instance , Lucozade was first marketed pertaining to sick kids and then rebranded to target players. This is a good case in point developing a new market intended for an existing product.

Market Penetration:

This requires increasing sales of an existing product and penetrating the market further by promoting the merchandise heavily or reducing prices to increase product sales. This strategy has got the lowest risk strategy because the company knows the product and the marketplace. Market penetration is often used by supermarkets and enormous retail stores.


Diversification involves launching a fresh product in a new industry. It can also be the most rewarding, as a fresh perspective on a industry can often pay huge returns and produce huge competitive advantage to a smart and able firm. A lot of research is required to get issues right, and perhaps consultancies will probably be called in to help educate the business regarding its new

problems. Diversification can also decrease risk, because a large corporation can easily spread selected risks if it operates about more than one market.

Product Development:

Product Development is a medium risk strategy since the business is familiar with the market but is not the new merchandise. The business develops/introduces new products into existing marketplaces with the aim of selling the brand new product to existing customer groups. By way of example Microsoft with the Xbox2 game console introduced the Kinect, and there is an additional feature on that allows customers to play without the use of a controller, much like the Nintendo Wii. This can be an example of a new product which simply should be added onto the existing model aimed at the existing marketplace.


Apple Inc. has diversified immensely since its inception and has emerged to be the head in the computer system industry due to the unique and timely impressive products and services. Same can be described with the help of Ansoff’s matrix. Marketplace development

The fourth and last strategy of ansoff is definitely the market expansion. For marketplace development also to increase revenue, Apple Inc. had a huge potential in rising markets including China and India. Despite the fact that there was intense competition in these markets, Apple’s differentiated technique helped that develop the products/ companies in these emerging markets. More than one million iPhones have already been distributed and this reflects the demand for Apple products in other market segments of the world. Market Penetration

The first technique used by ansoff is the marketplace penetration. This means that the existing marketplace should be further more developed that is certainly selling really your merchandise in an existing market. Therefore if Apple computers. wants to sell more iPhones, it will convince the shoppers buying the item of its competitors to buy Apple’s products. There are several ways in which Apple Inc. may possibly attempt to do so and two of them are: 1) Using pricing strategies:

This kind of simply refers to advertise so that people get acquainted with more regarding the

product being offered for sale as well as the organisation has the capacity to maintain as well as to increase their market share. 2) Drive out competitors:

One of the many competitors of Apple Inc. can be Samsung Gadgets and it is very hard for Apple computers. to drive Samsung Electronics out from the market specifically after the launch of Samsung’s android operating-system. So the finest that Apple. could do is that it may promote greatly its products and this should be supported by a good prices strategy since this would make the products of its competition unattractive.


The 3rd strategy is usually diversification that is certainly launching a new product in a new marketplace. Apple actually started since “Apple computers, best known while the Macs personal computers. After Apple Inc. altered towards a digital hub technique which was initiated by the kick off of the iPod in 2001, followed by the IPhone in 2007 and finally the ipad tablet in 2010. This helped the organization to mix up as it not only produced pcs but as well many other cameras.

The “common thread for all apple products/services was the organisation’s innovation and unique design which differentiated Apple from its several competitors and gave the corporation a competitive advantage in the other companies.

Product development

The second strategy requires launching a fresh product for the firm’s existing customers. Apple computers., already have a global presence, in major marketplaces, and the company understands really customer inside-out, it arguably offers the best trade-off between risk and reward. By simply launching the iPad, iPhone and systems to the same audience Apple Inc. builds up bundled customer interactions across multiple platforms and thus creates brand loyalty. This kind of increases the likelihood of new products being a success.


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