Your task in this activity is to classify the examples listed below into one of the four categories on the product/market growth matrix (also sometimes referred to as Ansoff’s model). You will need to consider whether it is a new or existing product and market for the firm. A diagram of the product/market growth matrix has also been provided below to assist you.
- A wholesaler plans to double their retail sales team and sell more to their existing customers
- A shoe manufacturer is considering developing other products that may be of interest to their existing retail customers (such as socks, belts, shoe polish, hats, caps, etc.)
- A specialist health food firm (that now only sells directly to end-consumers) is looking to introduce a new product range in order to gain access to chemists shops
- Kmart stores are planning to use more frequent discounts to attract more new customers and to sell more products to their existing customers
- McDonald’s are planning to further broaden their product range to appeal to a wider market
- A successful accounting firm is just about to open their first international office
- A local plumber is thinking about buying a hardware store that is currently for sale
- A large real-estate chain has just set-up an internet site that helps people, who are buying/selling property, to find qualified service providers in their area (such as, lawyers, accountants, movers, cleaners, and so on)
- A small winery (who just makes and sells wine) is considering opening up a small restaurant on their property
- A local Chinese restaurant has expanded its menu to also include Vietnamese and Thai food
- A major law firm has doubled the number of seminars and conferences that it holds each year, in an attempt to win more business
- A university/college has started running correspondence courses for the first time
- How would you classify each of the examples into the product-market growth matrix?
- Which of the four options would most firms tend to rely upon most frequently for their growth? Which option would be least used? Why?
- How helpful would this matrix be for firms in planning their growth options and related strategy?