Ansoff Matrix analysis for Santander banking industry

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Bank Satander

Ansoff Matrix

The company that we are examining is Satander Group. This is a firm that is a subsidiary of Sovereign Bank. To determine the strengths and opportunities facing the company we will look at the Ansoff Matrix. This is when a corporation is focusing on a number of different factors to include: market penetration, market development, product development and diversification. These elements are important, because they are identifying how quickly the firm is growing in various segments of the industry. Below is the table for the Ansoff Matrix of the firm.

Ansoff Matrix Satander

Market Penetration -- 80 million customer around the world

Product Development - Corporate Business Center Solutions

Market Development -- 140 thousand branches / 35 thousand ATMs.

Diversification -- The purchase of RBS.

(Ansoff Matrix 2011)

Market penetration is when you are looking at the company's ability to be able to maintain its dominance inside the sector and their customer base. In the case of Satander, the firm has been successful in achieving these objectives with the bank serving over 80 million customers in 40 countries. This was placed in this particular box based on the company's current dominance in key markets. (About Satander 2011) (Ansoff Matrix 2011) (About the Group 2011)

Market development is when executives are focusing on going into new areas that will increase their overall market share. Satander is accomplishing this by opening new branches in some of the fastest growing areas of the world. As, the company currently has: 140 thousand branches and 35 thousand ATM's around the globe. This was selected due to the firm's ability to increase and improve their dominance in existing markets. (About Satander 2011) (Ansoff Matrix 2011) (About the Group 2011)

Product development is a strategy of concentrating on new products that are geared towards existing market segments. In the case of Santander, they are concentrating on offering businesses an all in one solution for their financial needs through the development of their Corporate Business Center Solutions. This is where there are specific locations that are designed to provide this segment with a product mix that will address those issues that are most important to them. A few of the most notable include: financing, IT platforms, insurance and investing. This was chosen, because it is illustrating how the company is reaching out to new demographics of customers. (Our Future Plans in the UK 2011) (Ansoff Matrix 2011) (About the Group 2011)

Diversification is when a firm is focusing on expanding into growing market segments. As far as Satander is concerned, they have been acquiring other companies that will give them the ability to reach out to new customers such as: the purchase of the Royal Bank of Scotland (RBS). This was selected because it is helping the company to quickly expand into new areas and reach out to a larger demographic of customers. (Our Future Plans in the UK 2011) (Ansoff Matrix 2011) (About the Group 2011)