Role of Ansoff’s Matrix in Strategic Management

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