Role of Ansoff’s Matrix in Strategic Management

This report discusses the role of Ansoff’s matrix in strategic management and how Luxottica and GrandVision have applied it to achieve success. It explores the different strategies used by these companies and provides recommendations for GrandVision.

Strategic Management
TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................3
Role of Ansoff’s matrix...............................................................................................................3

GrandVision competition in it’s market......................................................................................4
GrandVision adds and destroy values of it’s portfolio................................................................5
Recommendation.........................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
INTRODUCTION
Strategic management is the approach that gives overall guidance by creating plan and
policies design to gain all objectives and goals then allocate adequate resource for implementing
the plans. In simple word, strategic management supports organization to achieve a competitive

edge over it’s competitors. This report will discuss about Ansoff’s matrix and how Luxottica
and GrandVision have applied over the period.
MAINBODY
Role of Ansoff’s matrix
It is a marketing planning process that use to determine business strategy which can bring
company in top position in it’s market (Mohajan, 2017). It comprises four type business
strategies i.e. product development, market development, market penetration and diversification
strategy. Luxottica and GrandVision are both world famous multinational company which evolve
Ansoff’s matrix to get success over the period. For example,
 Luxottica has used market development strategy. Market penetration strategy focuses on
existing market with existing product. With this strategy company has enabled to achieve
good brand image in it’s existing market. Later on, company has goal to expand product
portfolio that builds strong customer base, so it has applied product development strategy
as well which is one of the most famous strategy. According to product development
strategy, company must focus on developing new products with existing market. With
this strategy Luxottica has brought innovation in it’s existing product as resulted it
offered high quality product to make market faster. Thus, company has enabled to gain
competitive edge over it’s competitors. Ray-Ban is the world’s valuable optical brand and
currently it generates high revenue in sales of Luxottica company. The reason behind is
that in 1999, Ray-ban used to be low notable brand that used to sell at lower price but
promised to protect 1000s of job of USA so it shifted it’s production from Italy and
China. Meanwhile period Luxottica developed plan to diversified brand portfolio so, it
bought Ray-bans and invest huge capitals to make this brand more reputable and highly
demanding across the world. It denotes Luxottica has practiced market development
strategy that focuses on entering into new market with existing product portfolio. Thus,
with wide brand portfolio company has expanded it’s business in multiple countries
across the world. Luxottica faced vary tough competition in it’s sectors from past few
years so it planned to sell it’s products i.e. frame at lower cost in the French market. Then
it has merged with Essilor brand that is French multinational company that has already

captured 45% market share on it’s world’s prescription lenses (Loredana, 2016). Thus,
Luxottica has practiced Ansoff’s matrix in it’s organization over the period and today’s
world it has become one of the most famous brand among others in the world.
 GrandVision is another world’s famous optical brand which posses own frame brands
and contact lens brands. It operates it’s business more than 40 countries across the world.
Market development strategy of Ansoff’s matrix has implemented by GrandVision
company to expand it’s business and product at global level (Eckardt, 2018). So, it
merged with Pearl Vision to acquire the Dutch and Belgian operation in it’s organization
as resulted it has successfully established it’s franchises into new markets. Self-designed
branded frame supported company to increase more than 600 retail stores across the UK.
Thus, it has become one of fasted growing brand in the world. GrandVision has
good relationship with Safilo because of the designer frame. Due to strong relationship
between Safilo and GrandVision has affect revenue of Safilo positively in 2018.
However, GrandVision has plan to expand it’s business into new markets or expand it’s
high existence across the world. Thus, market development strategy of Ansoff’s matrix
constantly practiced by GrandVision company effectively.
GrandVision competition in it’s market
GrandVision is considered one of the major giant company among others in the optical
market. GrandVision has own frame brands and contact lens brands. It operates more than 40
countries through 7000 optical stores and serves it’s product services more than 150 million
customers across the world. To stay long run in the optical market followed product development
strategy with the support of Saflio and offered premium designer frame to people in initial stage
that helped to generate high revenue on it’s organization (Tsatsoula, 2018). Later on,
GrandVision implemented market development strategy that supported to expand it’s business
into multiple country with the support of Pearl Vision. Thus, company has established strong
customer base and it’s high standard quality of designer frame has brought competitive
advantage in it’s market.
GrandVision adds and destroy values of it’s portfolio
With Ansoff’s matrix GrandVision adds values for it’s portfolio. For example, product
development strategy supports company to differentiate it’s products like designer frame and

contact lens brand from others in the optical market. it also supports company give value to the
customer by offering customized frame and contact lens products. these strategies is known as
two-tier corporate strategy because with the product development strategy GrandVison improve
it’s product portfolio and offers customized products, on the other hand such products and
services attracts customer towards company to buy innovative product and services. In 2011 it
practiced market development strategy to expand it’s existence around the world. So, it merged
with Pearl Vision in 2011 to involve Dutch and Belgian operations. These operations supported
GrandVision to take specialization in the world’s prescription lens. This strategy is known as
global strategy. Generally, Peral Vision influenced values of company’s brand and helped to
expand it’s stores across the UK. Overall, it enabled to expand it’s subsidiaries into multiple
markets across the world. It denoted GrandVision Adds value for it’s portfolio. Export strategy
also follow by GrandVision that has supported to influence purchasing behaviour of customers
and in exchange improves productivity of the business. Standardization strategy also follow by
GrandVision in order to differentiate it’s product from others in the global market. These
strategies have increased brand image as well as values of the company.
Recommendation
 GrandVision must also implement Merger and Acquisition strategy that will enable it to
build strong global presence into multiple countries and will generate high revenue as
well. For example, Luxottica has followed this strategy and merge with other brand like
Essilor which already has captured large market share in it’s market and posses’ strong
portfolio (Vrtana and Gogolova, 2020). Due to this Luxottica has influenced it’s brand
image in the global market and has enabled to build loyal customer base. With this
realistic example GrandVision should implement this strategy in it’s organization.
 Artificial Intelligence is another effective strategy that will support company to bring
advancement in it’s existing products and services like Luxottica then automatically
company can expand it’s brand portfolio which attracts customers towards company for
buying products. Luxottica practiced this strategy in order to give value to the customer
and take competitive advantage in the global market as resulted it has achieved. So,
GrandVision must implement this strategy to achieve high growth.

CONCLUSION
In this report has been concluded about role of Ansoff’s matrix that used by Luxottica
and GrandVision to achieve high productive result in their business. It also can be summarized
about GrandVision company which has enhanced value in it’s portfolio through market and
product development strategy in this report.

REFERENCES
Books and Journals
Eckardt, O., 2018. Company Maturity Matrix. EMAJ: Emerging Markets Journal, 8(1), pp.28-
30.
Loredana, E.M., 2016. The Use Of Ansoff Matrix In The Field Of Business. In MATEC Web of
Conferences (Vol. 44, p. 01006).
Mohajan, H., 2017. An analysis on BCG Growth sharing matrix.
Tsatsoula, E., 2018. Application of Ansoff's Matrix-Methodology: Marketing Growth Strategies
For Products.
Vrtana, D. and Gogolova, M., 2020. Marketing strategy applied in the environment of an
international company. In SHS Web of Conferences (Vol. 74, p. 01037). EDP Sciences.