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Market options matrix
Corporate management's frrst course of action should be a review of whether any
opportunities exist for improving its existing performance ofbusinesses. Ansoffmatrix has a
useful framework for detecting new intensive growth opportunities called a product-market
expansion grid. The organization frrst considers whether it could gain more market share
with its current products (market-development strategy). Then it considers whether it can
develop new products of potential interest to its current markets (product development
strategy). It also reviews opportunities to develop new products for new markets ­
diversification strategy.
Product or service: Increasing technical inuovations
Furthermore the Ansoff matrix has this useful ability to assist in detecting new intensive
growth opportunities based on production and service, which could be also be achieved by
considering market penetration, product development, market development and
diversification ofactivities.
Market Penetration
(Tourism)
Market Development
(Agriculture)
-(Agriculture and Tourism synergy)
Figure 7.2: Market options matrix - Ansoff matrix
I
I
Product development
Diversification
(Related markets)
(Source: Kotler, P (1999): Marketing Management, The Millennium Edition, Tenth
Edition, Prentice Hall, New Jersey, 74 -75]
Given the results of the SWOT analysis of the Ulundi municipal area, the study adopts a
market options matrix as the primary strategic tool in the model. Based on the large
ignorance gap of producers revealed by the study about the tourism potentials of the study
area, a market penetration strategy would be employed in the tourism sector. Meanwhile the
model advocates that the agricultural sector which has not been as active as it should be.
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