For my final blog post I will be discussing, what in my opinion, is one of the most important, useful and interesting of all the marketing models I have learned during the course. I am referring to the Ansoff’s matrix. The Ansoff Matrix provides a way of analysing how to grow via existing products and new products, and in existing markets and new markets.
The matrix consists of four growth strategies listed below which I will use to apply to the Australian Securities Exchange namely:
1) Market Penetration: This is a growth strategy of increasing sales and revenue by selling existing products to existing customers. Therefore the ASX can achieve this by either reducing the transaction costs incurred while purchasing shares. This should give existing customers more incentive to purchase additional shares due to the fall in transaction costs. They could also increase the cost to earn more revenue from individual transactions.
2) Market Development: This is a growth strategy to increase sales by selling existing products to new markets. The ASX can implement this strategy by selling their Australian shares, bonds and other financial instruments to customers in foreign countries.
3) Product Development: This is a growth strategy to increase sales by selling new products in existing markets. The ASX can implement this strategy by selling new products like exotic financial instruments and weather derivatives to Australian customers who already own other already existing financial instruments.
4) Diversification: The final growth strategy is a method of increasing sales by selling new products in new markets. ASX could implement this through a combination of the above listed methods. For example they could sell new products like the exotic financial instruments and weather derivatives to customers outside Australia.
Thus the ASX can use one of or a combination of the above growth strategies to increase their sales/market share.
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