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“Michael Hill” is a retail jewellery company that was started in 1979 by Michael Hill and his wife, Christine, when they opened their first store in the New Zealand town of Whangarei. The company grew steadily, expanding to 10 stores in New Zealand by 1987. As the company grew, it was elevated to national prominence through its unique retail jewellery formula that included dramatically different store designs, a product range devoted exclusively to jewellery and a highly effective advertising campaign. Also, in 1987, “Michael Hill” expanded into Australia, opening four stores in four weeks. The company has since expanded into Canada and the USA. In late 2006, following a five-year trial, the company deviated from just making jewellery, and launched its own brand of watches under the Michael Hill name, available only in New Zealand stores. The watches were a success and are now also sold in the company’s Australia, Canada, and USA stores.
Explain the Ansoff’s matrix (also known as a diversification analysis). Using the strategies outlined within this matrix, explain how “Michael Hill” has grown as a company since they opened their first store in 1979.
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