Page 2: Diversification
As organisations develop their businesses, they face a range of choices and opportunities.
One way of representing these choices is through a matrix developed by Igor Ansoff in 1965.
Alternative marketing strategies
By relating product opportunities to markets, this mix identifies four broad alternative marketing strategies open to Experian:
a) Market penetration. This involves selling more of existing products to existing markets. This increases the organisation's market share. Experian's is the largest credit reference agency in the UK market and in this field the company has two main competitors.
b) Product development. This means developing new products for existing markets. Experian is a customer-focused organisation. Its customers are businesses. Knowledge of individuals and markets enables Experian to build and develop a wide range of products relevant to its customers.
c) Market development. This strategy takes existing products and finds new markets for them. Experian uses market research to target and develop its markets. Operating in more than 60 countries, Experian used this strategy to become a global leader in the information products market.
Diversification stands apart from the other strategies. It involves the greatest risk of all strategies.
d) Diversification. This involves moving away from core activities and developing new products for new markets. Diversification stands apart from the other strategies. It involves the greatest risk of all strategies. It requires new skills, new techniques and different ways of operating.
In a world where credit is part of modern living, Experian diversified with a new product CreditExpert, launched in 2003. This decision recognised that many consumers wanted to be more in control of their credit status, to be able to monitor their credit report at any time and protect themselves against identity fraud.