Competitive Strategy: Ansoff Matrix, Porter's & Blue Ocean Strategy

This essay explores the application of three key strategic tools—Ansoff Matrix, Porter's Generic Strategies, and Blue Ocean Strategy—within the context of Australian companies across different industries. The Ansoff Matrix is examined through the lens of Alphapharm (Mylan), illustrating its product development strategy in the pharmaceutical sector. Porter's Generic Strategies are analyzed with respect to 121 Childcare, highlighting its focus strategy in the childcare industry. The Blue Ocean Strategy is discussed in relation to Bird Healthcare, showcasing its innovative approach in the medical equipment market. The essay concludes that these competitive strategies are crucial for organizations seeking to establish and maintain a competitive advantage, enabling them to attract target markets, enhance sales, and achieve sustainable growth.

Running head: COMPETITIVE STRATEGY
Competitive Strategy
Name of the Student
Name of the University
Author Note

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A competitive advantage is a kind of benefit over the competitors in the operating
market that is gained by providing or offering the customers with value, low price or providing
with something unique in terms of higher prices (SPEAR 2018). The generic strategy helps the
organization to cope with the five competitive forces in the industry and gain competitive
advantage in the market. The Ansoff matrix helps the organization to identify the risks to
quickly develop a growth strategy. The chosen 3 industry for the essay are medical equipment,
pharmaceutical and child care. For each strategy three different companies are chosen from each
of the three industries. The essay will highlight the three different strategies like Ansoff matrix
for Alphapharm company, Porter’s 3 generic strategy for 121 Childcare and the blue ocean
strategy on Bird Healthcare. All the organizations are based in Australia.
Ansoff Matrix
Ansoff Matrix is a marketing planning model that helps the business to determine the
product and market growth. There are four factors that are considered in the matrix. The market
penetration focuses on selling the existing products into the existing market (Dawes 2018).
Market development is the growth strategy that focuses on the selling the products of the
business in the new markets. In product development business focuses to introduce new product
in an existing market. The last factor is diversification, where the new products are marketed in
new markets.
The Ansoff Matrix is based on 4 different grids with 4 factors indicating the type of
strategy that the company should maintain to achieve competitive advantage. It helps the
organization to determine the suitable strategy for expanding growth and increase its sales in the

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market. It gives a clear idea about which strategy to stay upon or which strategy will best suit the
current market trends to explore the market competition.
The chosen industry for this strategy is Pharmaceutical in which the chosen company is
Alphapharm operates with the name of Mylan in Australia. Alphapharm Company was
established in 1961as a company where they started helping people in town and rural
communities. Their first new drug application was approved in 1984. It is one of the largest
generic companies in the world (Mylan.com.au 2018).
According to Ansoff Matrix, the company follows the product development of growth
strategy where it creates medicines in the market and distributes in over more than 7,500
different medicines retail, wholesale, government and institutional customers. Its staff
comprising of 3,000 scientist which are involved in worldwide research and development. It
innovates therapeutic and designs high quality product to increase efficiency and improve care.
The organization is based on its innovative products that after approval is delivered in the
existing market.
Porter’s 3 generic Strategy
Porter’s generic strategy was framed by Michael Porter. It takes into consideration the
position of the organization in its current market. It consists of three strategies that are rarely
used by the businesses to achieve and maintain competitive advantage in the market (Cavaleri
and Shabana 2018). The threes strategies are:
Cost leadership strategy concentrates on efficiency. Under this strategy, the product is produced
at a low cost as compared to others and is available to a large number of customers. It includes

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the risk of lowering the cost of the competitors in case it will directly hamper competitive
advantage.
Differentiation strategy concentrates at the broad market that involves creation of a product or
services to create a competitive advantage throughout the industry as unique. The associated
risks with this strategy are the change in the customer preferences and imitation b y the
competitors.
Focus strategy focuses on the selected target market. It is also known as niche strategy. the
concentration is given more on effectiveness rather than efficiency. The risks in this strategy are
likely to be the changes in the target market.
These strategies are not firm or industry based instead it is based entirely upon the
organization to carry its decision and operations according to the strategies. It is used in the
business unit level to gain competitive advantage over the industry forces. Each time new
strategy if chosen and implemented it considerably increases the risk of the factors.
The chosen company is 121 Child cares. It is part of an Australia-wide network of early
learning centre. The 121 Child Care is owned by affinity Education centre. It has a focus onto
provide the children with the highest standard of early education. The organization uses generic
strategy of focusing on the selected market which is young aged children (121childcare.com.au
2018).
Blue ocean strategy
Blue ocean strategy is another kind of systematic approach that focuses on making the
competition irrelevant and grabs the market with the best opportunities (Motswene and Hamman

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2018). In simple words, the blue ocean strategy refers to the market for the product for which
there is no or few competition in the market. It is applicable to all types of sectors and
businesses. It helps the business to grab the new demand by introducing new product or services.
This strategy enhances the practices of the organization to a certain level of creativity or
experience that is new for the consumers and the target market. It often brings differentiation
strategy in similar with the blue ocean strategy.
It clearly points out towards moving into a market or market segment where there is no
competition or few competitors on the basis of limitless space to practice business alone with
own strategies. It indicates towards creating or designing something that is completely new in the
market or rare as compared to others. It also puts a goodwill in the market where there is no other
company same. It brings the organization a specific power to increase its capacities and
capabilities with the efficiency and effectiveness of the workers or leadership skills.
The chosen industry for this strategy analysis is medical equipment in which the
company is Bird Healthcare. It is an Australian owned company with over 25 years experience in
developing, manufacturing and selling quality medical equipments. it primary designs respiratory
and sleep medicine market with the help of its innovative strategy. It operates in the market with
Blue ocean strategy to differentiate it with other market competitors or stand alone in the market.
it uses its diverse team with high scientific, medical and business knowledge to build its
competitive advantage (Bird Health Care 2018).
From the above discourse, it can be concluded that the organization uses various kinds of
competitive strategy to maintain its position, strategy and implement its decision accordingly to
attract more target market and increase in terms of sales and growth. The above chosen three

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strategies are Ansoff matrix, Porter’s 3 generic strategies and Blue ocean strategy which are used
by three different companies of different industries. It shows that the competitive advantage is
needed by all kinds of organization either profit making or non-profit making to build its own
competitive advantage in the current market.
Reference
121childcare.com.au 2018. Child Care & Preschool - 121 Cannonvale Rainforest Centre.
[online] 121childcare.com.au. Available at: http://121childcare.com.au/ [Accessed 17 Apr.
2018]. focus
Bird Health Care 2018. Respiratory and Sleep Medical Devices Manufacturer and Distributor |
Bird Healthcare. [online] Bird Health Care. Available at: https://www.birdhealthcare.com/
[Accessed 17 Apr. 2018].==equipments differentiation strategy.
Cavaleri, s. And shabana, k., 2018. Rethinking sustainability strategies. Journal of strategy and
management, (just-accepted), pp.00-00.
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems.
Motswene, c.r. and hamman, m., 2018. Blue ocean strategy as a predictor for effective
performance of the medium-sized and large businesses. Journal of marketing and hr, 7, pp.403-
421.
Mylan.com.au 2018. Mylan – Seeing Is Believing. [online] Mylan.com.au. Available at:
http://www.mylan.com.au/ [Accessed 17 Apr. 2018]. innovation
Spear, c.h., 2018. 2differentiation. Focus, p.10.

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