Question

Analyse the direction of growth that Severstal has undertaken to grow their business using Ansoff’s product & market matrix,.

Answer 1

Several is a company that operates steel and mining industry , It is one of largest steel company in Russia. In Ansoff  products and market strategy matrix ,there are four strategies they can be used by firm like severstal to grow it's branches and this analysis also helps in the risk associated with each strategy.

FOUR STRATEGIES-

1. MARKET PENETRATION - In this strategy , the business try to increase sales of their existing products . Severstal also in order to increase it's sales , focussed on emerging markets in Russia where some additional opportunities are available and increase the sales . They should focus on high value added products and focus on steel related mining industry., they target on main market like Russia and to capture maximum market share.

2. PRODUCT DEVELOPMENT - In this strategy , the firms focussed on introducing new products , Severstal focus on increasing the quality of existing products and introduce raw - materials which can help in Development of new products . It also focus on wire pipes, metal ware and various other steel products.

3. MARKET DEVELOPMENT-. In this strategy , the firms enter new market. Severstal can focus on entering new markets like South Asian Countries , African countries,  Middle East and Latin American countries where they can emerge as fastest growing Industry.

4. DIVERSIFICATION - Entering new market with the introduction of new market Severstal can enter into gold business as well as steel related mining and steel products and diversify their products.