Growth is necessary for any profitable firm, and the Ansoff matrix is a planning tool for studying
the development strategy for making informed decisions regarding business expansion through
networks of product and market extension. One of the well-known frameworks for selecting
growth methods is Ansoff's matrix. Igor Ansoff first it in 1957 in his essay titled "Strategies for
Diversification," in which he provided four market expansion techniques. Ansoff (1957)
concluded that a company must always develop and adapt. Market penetration, market
expansion, product innovation, and diversity are the growth vectors (Hall D., 2007).
Marketers that are brave enough to develop in the market and get a competitive edge employ this
matrix. The Ansoff matrix provides tactical options for achieving these goals.
A good Ansoff Matrix strategy for the introduction of the lumber business of West Fraser into the
Mexican market would be market development. The market development strategy aims to bring
current goods or services into new markets. In this scenario, West Fraser would be introducing its
timber goods to the Mexican market.
Here is how West Fraser may put the market expansion plan into practice in Mexico:
1. Market Penetration: Increased sales of its current timber products in the Mexican
market might be the first step in West Fraser's market penetration strategy. This can entail
focusing on brand-new clientele, such as shops, furniture producers, or construction
firms. The organization might potentially look into joint ventures or distribution
arrangements with nearby companies to expand its market reach (Eagle L., 2007)
2. Product development: West Fraser may think about modifying its timber products to
meet the requirements of the Mexican market. To conform to regional tastes and building
techniques, this can entail changing the product's specs, dimensions, or packaging. West
Fraser can stand out from rivals and draw in more customers by providing customized
items (Aarnio T., 2008)
3. Market Development: West Fraser might increase its market share thereby focusing on
new Mexican regions. It may be used to pinpoint places with a strong demand for timber
goods, such as those undergoing development or increasing urbanization. West Fraser can
better serve local clients and increase its market position in certain areas by opening
distribution centers or sales offices (Johns, 2002)
4. Diversification: While the market growth plan places a strong emphasis on extending
current items into new areas, West Fraser may want to think about broadening the scope
of its product offerings in Mexico. This can entail bringing in related timber goods like
plywood, engineered wood, or wood-based furniture. By diversifying, a firm can increase
market share and reduce risks related to depending primarily on one product
(Lichtenthaler E., 2005)
When West Fraser enters the Mexican market, it is crucial to undertake in-depth market research,
evaluate the competitive environment, and consider elements like legal requirements, logistics,
and cultural quirks. West Fraser can make the most of its current resources and skills while
taking advantage of the prospects presented by the Mexican wood industry by putting into place
a market development strategy.
References
Aarnio T., Hamalainen B A. A., (2008).Challenges in packaging waste management in the fast
food industry. Resources, Conservation and Recycling
[Link]
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Eagle L., Brennan R., (2007). Beyond advertising: in-home promotion of‘‘fast food’’. Young
Consumers,
Hall D., Lobina E., (2007). Profitability and the poor: Corporate strategies, innovation and
sustainability. Geoforum.
Johns, A, N. & Pineb, R. (2002). Consumer behaviour in the food services industry: a review.
Hospitality management
Lichtenthaler E., (2005). Corporate Diversification: identifying new businesses systematically in
the diversified firm. Technovation