Ansoff Matrix of Samsung 

Samsung is a multinational South Korean conglomerate brand. Samsung started its journey as a trading company in 1938; and changed its focus and emphasis on consumer electronics in the 1990s. Lee Byung was its founder. Today, we’ll discuss the Ansoff matrix of Samsung and; four growth matrix strategy quadrants; market penetration, market development, product development, and diversification.

Elements of Market Penetration Strategy of Samsung

• Conduct in-person and face-to-face events
• Launching various types of sales promotional campaigns
• Digital and social media platforms to communicate with the online users
• Collaborating with influencers for product promotion and brand endorsments
• Optimized web content to rank top in the searches
• Sponsoring mega sporting events

Top Selling Markets and Geographical Regions of Samsung

• North America – 28%
• Europe –
• Africa – 32%
• Asia – 23.54%
• South Korea – 63%

Latest and Best Selling Collection of Samsung

• Powerbot Robot Vacuum by Samsung
• Family hub refrigerator by Samsung
• Odyssey G9 gaming monitor of Samsung
• Galaxy buds pro of Samsung
• T5 portable SSD of Samsung
• QLED TVs by Samsung
• Galaxy watch 3 of Samsung
• Tab 7S of Galaxy Samsung
• Note 20 Ultra by Galaxy Samsung
• S34 Series of Samsung

The Ansoff matrix of Samsung would focus on the four growth matrix strategy quadrants; market penetration, market development, product development, and diversification. Here’s Samsung Ansoff matrix company example as growth matrix strategy as follows;

Ansoff Matrix of Samsung 

Let’s discuss the four growth matrix strategy quadrants in the Ansoff matrix of Samsung; they’re as follows;

Market Penetration Strategy of Samsung

The market penetration quadrant in the Samsung Ansoff matrix business example as a growth matrix strategy has the lowest risk. It is because here the consumer electronic brand sells its current products and services in the existing customer market. However, the consumer electronic market is growing, and the market penetration growth strategy is possible.

I-Price Discounts

Samsung implemented price discounts and a lower pricing strategy for its existing products and services just before the launch of the new model. It is a great market penetration strategy and it helps the company to amplify its sales and market share. Most importantly, it allows the brand to make room for the new version and latest model by getting rid of the existing and previous stock.

II-Bundle Offer

In order to attract the attention of existing customers and penetrate the existing market; Samsung launched the bundle offer comprising free software updates, products with free accessories, or a bundle of accessories at a discounted price. When Samsung offers different types of products available in the market, it makes it difficult for competitors to sustain their position.

III-Local Partnerships & Alliances

Samsung develops partnerships and alliances with local brands to stabilize and maintain its position in the market.

IV-Marketing & Sponsorships

Samsung runs various types of marketing and promotional campaigns on various media channels to promote its products and services in the existing customer market. Along with marketing, Samsung also sponsors various tech events and tech exhibitions to promote its products and brands.

Market Development Strategy of Samsung

The market development quadrant in the Samsung Ansoff matrix business example as the growth matrix strategy has a bit higher risk than the market penetration strategy. It is because here you expand your market and offer your current product portfolio in the new market. However, you don’t know the culture and response of the new market; that’s what makes it riskier.

I-Global Market

Samsung is already running its business in the global market, but there are some geographical regions where the company needs further expansion. While expanding its business in the new market; Samsung employs attractive packaging and hires local celebrities and public figures for the promotion of its products and brand.

II-Distribution Network

Samsung employs various supply chain distribution channels and networks to make its products and services in new markets and geographical regions. They could be online stores, e-commerce platforms, retail stores, authorized sellers, and branded stores.

III-Differentiated Pricing

Samsung implements different types of pricing strategies in different markets depending on the market trends and local currency exchange rates. It may seem a risky strategy, but Samsung has successfully expanded its business in the global market.

Product Development Strategy of Samsung

The product development quadrant in the Samsung Ansoff matrix business example as the growth matrix strategy has a higher risk than the market penetration strategy. It is because here you launch a new product or service in the existing customer market. You would have to run new marketing and promotional campaigns for the new product and it makes it riskier.

I-Product Diversity

Samsung launches different types of smartphone models ranging from low price to flagship and premium pricing smartphones and devices. It allows the company to target various segments of the customer market. However, the company introduces new models in every category throughout the year.

II-Research & Development

Samsung allocates a significant amount of capital resources to research and development for the manufacturing and production of the latest models. Along with developing new products and features, R&D allows the company to make improvements in the existing and gain a competitive edge in the market.

Diversification Strategy of Samsung

The diversification quadrant in the Samsung Ansoff matrix business example as growth matrix strategy is the most risky strategy than all three previous growth strategies. It is because here you launch a new product or service in the new customer market. You won’t know how your new market will react to the new product.

I-Irrelevant Businesses & Markets

Samsung hasn’t limited itself only to the production and manufacturing of consumer electronics products and goods. Rather, the company has successfully diversified its business in various categories like construction, entertainment, healthcare, medical equipment, clothing, and shipbuilding areas. The brand has done it by conducting thorough market and product research.

Conclusion: Samsung Ansoff Matrix Company Example Growth Matrix Strategy 

After an in-depth study of the Ansoff matrix of Samsung; we have realized that Samsung is the world’s leading multinational conglomerate brand. If you are learning about the Samsung Ansoff matrix company example; then you should keep in mind four growth matrix strategy quadrants; market penetration, market development, product development, and diversification.