Rolls Royce Holding plc is a multinational British engineering company. it was incorporated in 2011 which owns Rolls Royce. The company was formed in 1904. It manufactures, designs and distributes the aviation power system and many other industries. Rolls Royce is known as the second biggest manufacturer of aircraft engines, as General Electric is first. The company has major other business in energy sector and marine propulsion. The company is registered in London Stock Exchange. It is headquartered in Westminster, London (Rolls-Royce, 2020).
Ansoff matrix is an important marketing tool used by the companies for strategic planning. This is applied to have a look on growth opportunities in terms of revenue for the businesses in combination of products and services. The model helps the companies in increasing the sales and market share to have dominant position in the industry. Here is the detailed Ansoff matrix analysis of Rolls Royce.
Market Penetration
The market penetration is the strategy suggested by Ansoff matrix to penetrate in the existing market deeply with the existing product. This strategy helps the company in increasing the market share of the company. However, the market penetration strategy is viable in the case when company possess the developed market for the product. This strategy focuses on utilizing the current methods, distribution channels etc to generate more sales. Companies usually achieve this strategy by applying aggressive marketing and advertising campaigns. Sales representatives can be used for increasing sales. This strategy is least costly and risky and might take longer time for the results. In case of Rolls Royce company, there are not many evidences available about the Rolls Royce adopting market penetration strategy. However, Rolls Royce attract many customers as much as possible, but right now it does not look its priority (Quang, 2017).
Product Development
The product development is the strategy that focuses on selling new product in the existing market. This is the well-known strategy for automotive industry because many companies are increasing their product portfolio to serve to more and more consumers. Rolls Royce has adopted this strategy for growth purpose. At the moment, the company is developing new and different product for entering in the competitive market of SUVs. The company introduced Cullinan in 2019 as a vehicle which as gone into multiple testing in different condition so that it can be up to the expectation of the customers. Furthermore, Phantom production was discontinued in 2016 as the company wanted to focus on development of new and luxurious sedan. Ghost and Phantom made its identity in the sedan market as the luxurious cars. However, Phantom was discontinued, and new products of Rolls Royce entered in the market like Dawn. The new model Wraith had also made its place in the markets (Ma, 2016).
Market Development
Market Development is the growth strategy suggests the company to sell the established product in the new markets. The market expansion could be geographically or demographically. However, this strategy requires more capitalisation to enter in new markets. the company can also partner up with other companies that are in the same industry and operating in the target market. Moreover, in demographic market segmentation, the higher costs of marketing and more chances of losing brand perception in new markets. Rolls Royce has adopted the market development strategy. As the dealership of the company depends on the economical level of economies it wants to enter, Rolls Royce expanded itself in different regions. For example, Vietnam, Prague, Thailand, etc. Furthermore, Rolls Royce is expanding its showrooms to serve to more customers. It expanded itself in Poland and Japan markets. It also expanded itself demographically. It manufactured car specially for women in Prague in turquoise painted with gentler features (Quang, 2017).
Diversification
Diversification strategy suggests the company to enter in new markets with new products. This strategy deals with the risk factor of entering in new markets with new products which was not operated or dealt by the company. There are different ways of diversification, which completely depends on the synergy level among acquirer and acquisition. In Rolls Royce case, the company itself is the diversification strategy of its parent company “BMW”. As BMW was supplying engines to the Rolls Royce before the acquisition (UK Essay, 2018).
References
Ma, S. 2016. Final bsr report. [Online], Available at: https://www.slideshare.net/ChristyMa1/final-bsr-report-2016, [Accessed on: 27th January, 2020].
Quang, H. 2017. Marketing SWOT Analysis of Rolls-Royce Motor Cars. [Online], Available at: https://elearning.unyp.cz/pluginfile.php/58141/mod_data/content/2005/Do%20Quang%2C%20Huy_510543_Senior%20Project%20Thesis.pdf. [Accessed on: 27th January, 2020].
Rolls Royce, 2020. About the company. [Online], Available at: https://www.rolls-roycemotorcars.com/en_GB/home.html, [Accessed on: 27th January, 2020].
UK Essays. 2018. Rolls Royce Strategic and Business Management management Essay. [Online]. Available at: https://www.ukessays.com/essays/management/rolls-royces-strategic-and-business-management-management-essay.php?vref=1, [Accessed on: 27th January, 2020].