Ansoff Matrix Application: Growth Strategies of Tesco, RBS, and Tesla

This report provides an analysis of the Ansoff Matrix, a strategic tool used for business growth planning and achieving a competitive advantage. It discusses the four key strategies within the matrix: market penetration, product development, market development, and diversification, highlighting the associated risks and benefits of each. The report then applies the Ansoff Matrix to the growth strategies of three companies: Tesco, the Royal Bank of Scotland (RBS), and Tesla. For Tesco, it examines how the company has used market penetration through increased grocery sales, product development through financial services and petrol sales, market development through convenience stores and international expansion, and diversification. The analysis of RBS focuses on market penetration in financial services, product development through insurance, and market development through mergers and acquisitions. Finally, the report explores Tesla's use of market penetration with its electric vehicles, product development in new vehicle models, and potential market development in India. The conclusion emphasizes the role of business strategy in achieving a competitive advantage, product differentiation, and customer retention. The report includes references to relevant academic sources.

STRATERGY

TABLE OF CONTENTS
 ANSOFF MATRIX
 TESCO
 ROYAL BANK OF SCOTLAND
 TESLA

Ans- off matrix
 The ans- off matrix is tool used by
the firm to have the proper level of
analysis in order to have the proper
planning of the strategies for
determinations of their growth in
order to gain the competitive
advantage over the competitors. The
ans off matrix is also known as the
product. Market expansion grid
which have the four different
strategies which helps the firm to
have growth along with risk
dissociated with level of strategy.

 The matrix has the discussion over the different strategies which are
having focus of the market in the terms of development or
expansionism of company in order to gains the competitive
disadvantage with right paling of product in right market. The four
different strategies are-
 Market Penetration usually have the focus over increasing the
sales in existing product of company in the existing market which
will helps the company to have development of product into existing
market. There is involvement of little risk associated at this level.
 Product Development have the focused over the introducing the
new product of company into the existing market which increase the
level of risk associated with company. There is inclusion of
moderate risk.

drawback of ansoff matrix
 The matrix has the discussion over the different strategies which
are having focus of the market in the terms of development or
expansionism of company in order to gains the competitive
disadvantage with right paling of product in right market.
 On the other hand the model use to fails to have the proper
account of all elements which is impacting in market which can
create differentiation and more beneficial froth strategy.

Example 1- Tesco Growth.
 Market Penetration The company have increaser the share of the grocery in the
business at the level of expenses of the Sainsbury and ASDA
 Product Development
 Expansionism of petrol sales
 Development of financial services.
 Market Development
 The company has moved into the convenience market store.
 The company have expanded into abroad (Sandberg and Holmlund, 2015).
 Diversification
 Tesco have the embracer of diversification which have involvement of ranges outside
the Tesco current activity range and sold into foreign market or customers.

Impact on Tesco
 Impacts
 Tesco has been the best fitted example for application of
ans off matrix as company have the finest and valuable
company providing the best electronics, health and beauty
products

Example 2- Scottish bank growth
The royal bank of Scotland have the rapid level of development which
is making the company more profitable.
Market Penetration
Increasable the level of sales which is banking financial services in the
Scotland which is having less level of risk associated with it.
Product Development
Have the involvement in insurance
RBS subsidiary have direct line revolution motor insurance
Market Development
Bank of Scotland and Halifax bank has been merged to have creation
of HBOS.
RBS took over William and Glynn 1979 along with ruling in Tesco
banking operation's.

Impact on Scottish bank growth
 Impacts
 This helps the company in have proper
identification of various potential market which
have increase the sales and selling the impact of
strategic management on organizational growth

Example 3– Tesla
Market Penetration
The company is focused on selling its Model S, Model X and Model 3
electric vehicles, Power wall 2 and Power pack 2 energy storage products,
Product Development
Mainly due to overly high cost of new product development in electric
vehicles and power storage sectors (Morse, 2015).
 The alternative fuel vehicles manufacturer is working to develop semi
truck and pick-up truck,
Market Development
Entering Indian market would be a strategically appropriate decision for the
electric auto maker, taking into account estimations that India will become
the third-largest auto market in the world by 2020 (Shahabi, and et.al, 2015)

Impact on Tesla
 Impacts
 This helps the company to have gain over company to
maintain competitive advantage, and attract early adopters
in the global automotive market. The corresponding
intensive strategies support organizational growth based
on increasing sales revenues from current markets
where Tesla, Inc. operates.