Paytm is an online platform in India. The service is available in eleven different languages. It offers use-cases for instance, mobile charges, travel, utility bill payments, events and movies bookings. The company offers in-store payments at the grocery stores, vegetables and fruit shops, parking, restaurants, pharmacies, educational institutions, and tolls with Paytm QR code. (Paytm, 2020).
The Ansoff Matrix is also known as market/product expansion grid. It is a model used by the companies for analysing and planning their growth strategies. This matrix shows four different strategies which can be used for helping the company growth. This also analyse company’s growth risk. Here is the detailed Ansoff matrix of Paytm.
Market Penetration
Market Penetration is an important growth strategy which deals with existing product of the company in the existing market. The company can use this strategy to increase its current product sales in the market it is operating. There are many ways of growing the business with this segment. Paytm is intensely using its E-retailing services to grow its business. Paytm is an online retailing and payment service company provides mobile recharge, electricity bill, gas bill, financial services, electronics etc. Its recharge portal is considered as one with which it penetrated the market. Paytm recharge portal in India are efficient system and many consumers prefer it over other methods. However, Paytm can use it for geographical expansion in different regions of India. The company can also take advantage of contracts and partnership of other agents to grow. It can also increase its presence in more retail outlets. The company can allow consumers to have the recharge portal facility form different retail stores too. This will help it in increasing the consumer base (Hudson, 2017).
Product Development
Product development is considered as second intensive in growth strategy. This means company has to introduce new product for the current market to increase the consumer base and sales. Paytm uses this strategy for achieving the growth objectives. The company can also modify the existing product and introduce as it new to current customer. Paytm introduced IRTC- Ticker Reservation, hotel bookings, events and movies bookings, automobiles, and flight bookings as a product development strategy. The company attracted its current customers to use new services provided by Paytm. It will make it easier for the customers to make bookings from a reliable source. Paytm invested more in the R&D to analyse which services will benefit its customers and the company in long run. Paytm used strategic marketing and different product development techniques to increase awareness among consumers about the new launched services. (Kothari, 2016).
Market Development
Market Development in Ansoff matrix deals with existing product of the company introduced in new markets. The company finds new markets to introduce the products of the company in order to attract new customers. Paytm introduced some of its services in new markets like, Payment Gateway, Ex-Grofers, Domino’s payment and its web page. The company provided the services to different areas of India and increase the markets to provide its services across country. This can be done with the help of excessive promotional strategies, and aggressive advertising. Paytm can use social media for excessive marketing and answer their queries. Moreover, Paytm can also provide education to consumers regarding the services and the company. As this will give the first mover advantage to the company (Kothari, 2016).
Diversification
Ansoff matrix encourages diversification strategy for growth. It means company have to produce new products and introduce it in new markets to spread the risk on different areas. Paytm adopted this strategy and introduced Financial services, ICICI life insurance, gold loan repayment mannappuram, and metro card. This helps the company in securing the position in financial market other than retailing segment. This mitigate the risk to greater area. In addition to this, the company also got expanded product portfolio as product penetration in the industry. This also helps Paytm to increase its overall share in the market. More consumers will start using the company’s products and services, thus, benefiting the company in long run (Hudson, 2017).
References
Hudson, A. 2017. Paytm Accelerating Growth through Diversification Case Solution. [Online], Available at: https://www.essay48.com/case/22547-Paytm-Accelerating-Growth-through-Diversification-Case-Solution, [Accessed on: 15th January, 2020].
Kothari, M. 2016. Paytm vs Snapdeal. [Online], Available at: https://www.slideshare.net/mehulkothari393/paytm-vs-snapdeal-66356933, [Accessed on: 15th January, 2020].
Paytm, 2020. About the company. [Online], Available at: https://paytm.com/, [Accessed on: 15th January, 2020].