The matrix considers four ways to grow a business: market penetration which is based on providing more of the same product to the existing customers; market development, which includes getting new customers for the existing products; product development, which includes developing new products for the existing customers; and diversification, which includes developing new products for new customers. Samsung stealing the market of Nokia is a classic example of market penetration, where more of the existing product is provided to existing customers. Google coming up with a new segment for SMEs is a reflection of product development. Taco Bell launching in Libya reflects the characteristics of market development, while the NASA launching a hi-tech tablet PC for the common man reflects the traits of diversification.

The Ansoff matrix shows the risk that a particular strategy will expose you to, which shows that each time you move to a new quadrant, you increase the risks that your company has to face. For a startup, market penetration and market development are the two strategies which can lead them to success, while large corporations can reap the benefits from product diversification and diversification. Market penetration would help startup cash in on their loyal customers by selling them more of the same product, which would ensure that the customers are coming back to you. You can also pay more attention to the products that didn?t do well in the beginning and try to fix them up, so that you can build on your failures. Startups are always on the lookout to expand their market, so why not take your unique offering to the newer markets and create a mark on them? Diversification stands out from the remaining three strategies, as it requires companies to acquire new skills, new techniques, and new facilities.

Larger corporations are always on the lookout on how to increase their profits, how to increase their customer base, and how to make their brand the numero uno in the market. This leads to tough competition between rival brands and also lead to innovations so as to create newer products, which would cash in on the already existing goodwill of your company.

Diversification is the most riskiest of the strategies, as it involves venturing out to strange lands with new products, which might backfire and lead the company to wind up its business, but it might teach many valuable lessons in the process. There are companies like ITC, which have moved out of their core business (tobacco) and ventured into a totally new sphere (hospitality, retail and others); at the same time, there are companies like Intel, which still stick to their core strength–microchips. They come up with newer versions of the product, which has made it the reigning market leader.

While moving between quadrants, companies have to make sure that they research the move carefully, build the capabilities required to succeed in the new quadrant, learn the in and out of the product and the market, and be prepared for the worst case scenario. In order to master the Ansoff matrix, companies need to have a thorough knowledge of their products and the markets that they serve, which will give them a framework to dwell upon. Depending on the short-term or the long-term vision, the companies can come up with strategies which would help them reinvent their products and make them better, as well as go on to cause Market Disruption.

1. TIMING – It was fantastically timed . Five days earlier the World Cup was at its peak and not one young man /woman would have joined hands . Ten days later the victory benefits of the world cup would have been lost– WHATEVER YOU DO IN LIFE TIME THE KILL WELL.

2. LOCATION. Anna Hazare fasted against corruption from 5 Apr To 9 Apr in a bid to quickly put in place the LOK PAL BILLIt is probably the shortest political fast unto death in the history of India.
ON – It was planned in Delhi , just a stone throw distance from Parliament . Planning the same in any other city would not have the same effect. PLAN THE
” WHERE ” CAREFULLY ALWAYS.

3. EFFECT OF REVULSION – The revulsion to various scams – 2G , CWG ,Adarsh colony scam ,Fake Pilots scam had the pot more than boiling . LESSON – STRIKE WHEN THE IRON IS HOT.

4. POWER OF THE YOUTH. It highlighted the effect and energy of the youth in this country who want a cleaner country , want a rapid change and are NOT AFRAID to rally and speak on issues they believe in. LESSON – YOU ARE YOUNG TOO- ATLEAST MAKE IT HAPPEN FIRST FOR YOURSELF. DONOT WASTE TIME. RR –LL —TT AAAAAAAAAAAAAAAAAAAAAAAAA.

5. COMMUNICATION – The new model of electronic communication ie Power of SMS , Facebook , Twitter , Internet to rally support was highlighted. The next General Elections in India will be faught on this plane .LESSON – YOU KNOW WHAT TO DO WHEN YOU NEED TO STAND UP AS CITIZENS TO CHANGE THE FACE OF GOVERNANCE AND CRIME IN YOUR COUNTRY.

SUGGEST VERY STRONGLY THAT YOU KNOW ABOUT – LOKPAL BILL – Follow it, MAKE NOTES and be ready as students to discuss and show your commitment to KNOWLEDGE in the forums you will be exposed to – A MUST PREPRATION for GDs and Personal Interviews .

DONOT INDULGE IN PATHETIC TIME WASTAGE, READ ,LEARN , TRAIN. USE POWER OF INTERNET AND FACEBOOK TO GROW AND ENGAGE INTELLECTUALLY.