Use of Ansoff matrix

The Ansoff matrix is a strategic planning tool that helps executives and managers devise growth strategies. This article explains the four parameters of the Ansoff matrix and provides examples of how it can be applied to companies like Netflix and Amazon Prime Video.

Running head: MARKETING
Marketing
Name of the student
Name of the university
Author Note

1
MARKETING
Table of Contents
Use of Ansoff matrix..................................................................................................................2
Description of recommended strategies.....................................................................................3

2
MARKETING
Use of Ansoff matrix
The Ansoff matrix can be considered as an effective strategic planning tool that can
help executives and managers to devise strategies for the growth in the future. The Ansoff
matrix usually considers four such parameters based on which business intends to grow in the
market. These include:
 Market penetration
 Market development
 Product development
 Diversification
In the case of Netflix, the strategy that can be used by the company is the market
development.
How: The strategy can be used to enhance the already existing market of the company
so that it can generate more revenue.
Where: It can be used in areas in which people view Netflix on a regular basis so that
the new movies and series can be updated.
What to do to achieve it: In order to achieve the market development policy it is
necessary that an analysis of the demand of the people using Netflix be done so that
innovation in the form of shows provided can be improved.
For an international market of online streaming, Amazon Prime video is considered as
an example. Amazon Prime can adapt the market penetration strategy so that it can gain
access to international countries.

3
MARKETING
How: The manner in which the market penetration strategy can be used is by
analysing the competing environment factors that exist while trying to set up a company in an
international location.
Where: The strategy can be used in countries in developing countries and in countries
where people are keen to watch movies or TV series.
What to do to achieve it: The actions that can be taken to achieve this strategy
includes an analysis of the demography that is interested in online streaming, contents that
are viewed the most and the current platform in which the online streaming is made. Market
penetration can help in the effective analysis of the competitors.
Description of recommended strategies
Market development: In the case of market development, the aim of an organisation
is to expand into new markets. Netflix is famous all across the United State, and with a
proper market development, the company can expand in the United Kingdom, China, India
and so on. The market development can be accomplished by segmenting the customers,
identifying new areas and by systematic development of the product or service. The success
of market development can be obtained if an organisation possesses unique product
technology so that the economies of scale can be improved.
Market penetration: Market penetration can be obtained by decrease in price,
increase in promotion and distribution support and product refinements. It defines the manner
in which a firm can grow in its existing market by using its current services and offerings.
The aim is to increase the market share in the current market scenario that exists in the
business. Amazon prime video can seek to increase its sales for the present services in the

4
MARKETING
United States. Thus, it needs to compete with Netflix so that the expected growth of 15.6%
can be met.