Ansoff Matrix applied to Companies Functioning in Sri Lanka

                                                        (Click on the Image to Enlarge)

   This is a Tool which helps Business to decide their Product and Market Growth Strategy

Market Penetration: ( Existing Market, Existing Products ):  This strategy will appropriate when market still growing or not yet saturated.

In this concept, main objectives are increasing the market share of a current product, make it extremely difficult for new competitors to gain new market share and increase usage of existing customers.

Let’s put one of this in to real life example. At the time Airtel launched in Sri Lanka, Dialog ran a massive advertising campaign to make it difficult for Airtel to enter market. Dialog has given many offers and price cuts to their customers.

Market Development: ( New Market, Existing Products ): This is found when regional business wants to expand.

For example Sri Lankan Gem industry’s main buyers are from Europe and UK, now the Gem businessmen looking forward for the markets in China and Russia

Product Development: ( Existing Market, New Products ): Developing new products to its existing markets.

Very easy explanation can be done taking Munchee biscuits as an instance. Manchee  always on to introduce new products to their existing customers. New products like Munchee Kalo, Munchee Bran Cracker, Munchee Kurakkan Cracker, Chocolate Marie biscuit, Munchee Chocolate Puff Cream Biscuits are few products that Manchee introduced to Sri Lankan market.

Diversification: ( New Market, New Products ):  This could be bit riskier strategy as it expects to move in to markets which has little or no experience.

As for an example we can point out that Aitken Spence and John Keels Holdings diversifying their business on to plantation side.

This is an effort to get a simple idea on how Ansoff Matrix applied by the Companies which are functioning in Sri Lanka. I just tried to explain how each of 4 concepts are in practice using few instances which I have noticed in recent past.

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