Ansoff Matrix

Anso Matrix
1.2 Market development
The Anso Matrix is a strategic planning tool that provides a framework to help executives, senior managers,
and marketers devise strategies for future growth.[1][2] It
is named after Russian American Igor Anso, who came
up with the concept.
In market development strategy, a rm tries to expand

into new markets (geographies, countries etc.) using its
existing oerings.
This can be accomplished by: (i) Dierent customer segments; (ii) Industrial buyers for a good that was previously
sold only to the households; (iii) New areas or regions of
the country (iv) Foreign markets. This strategy is more
likely to be successful where:- (i) The rm has a unique
product technology it can leverage in the new market; (ii)
It benets from economies of scale if it increases output;
(iii) The new market is not too dierent from the one it
has experience of; (iv) The buyers in the market are intrinsically protable.
1.3 Product development

Diagram showing the Anso Matrix
In product development strategy, a company tries to create new products and services targeted at its existing markets to achieve growth.
Anso, in his 1957 paper, provided a denition for

product-market strategy as a joint statement of a product line and the corresponding set of missions which
the products are designed to fulll.[3] He describes four
growth alternatives:
This involves extending the product range available to the

rms existing markets. These products may be obtained
by: (i) Investment in research and development of additional products; (ii) Acquisition of rights to produce
someone elses product; (iii) Buying in the product and
branding it; (iv) Joint development with ownership of
another product who need access to the rms distribution
channels or brands.
1.1
1.4 Diversication
Growth strategies
Market penetration
In market penetration strategy, the organization tries to

grow using its existing oerings (products and services)
in existing markets. In other words, it tries to increase its
market share in current market scenario.This involves increasing market share within existing market segments.
This can be achieved by selling more products or services to established customers or by nding new customers within existing markets. Here, the company seeks
increased sales for its present products in its present markets through more aggressive promotion and distribution.
In diversication an organization tries to grow its market share by introducing new oerings in new markets.
It is the most risky strategy because both product and
market development is required. (i) Related Diversication - Here there is relationship and, therefore, potential synergy, between the rms in existing business and
the new product/market space. (a) Concentric diversication, and (b) Vertical integration. (ii) Unrelated Diversication: This is otherwise termed conglomerate growth
because the resulting corporation is a conglomerate, i.e.
This can be accomplished by: (i) Price decrease; (ii) In- a collection of businesses without any relationship to one
crease in promotion and distribution support; (iii) Acqui- another.A strategy for company growth through starting
sition of a rival in the same market; (iv) Modest product up or acquiring businesses outside the companys current
renements
products and markets
1
References
[1] Quick MBA: Anso Matrix. quickmba.com. Retrieved

27 June 2014.
[2] MBASkool: Anso Matrix. mbaskool.com. Retrieved
27 June 2014.
[3] Anso, I.: Strategies for Diversication, Harvard Business Review, Vol. 35 Issue 5,Sep-Oct 1957, pp. 113-124
REFERENCES
Text and image sources, contributors, and licenses
3.1
Text
Anso Matrix Source: https://en.wikipedia.org/wiki/Ansoff_Matrix?oldid=710007701 Contributors: Bearcat, Hooperbloob, Ajuk,

EncMstr, QuiteUnusual, Dthomsen8, Haeinous, ClueBot NG, BG19bot, Bahooka, JaisonAbeySabu, 115ash, Crystallizedcarbon, Subho15
and Anonymous: 12
3.2
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What are the four growth strategies described in the Ansoff Matrix?

Describe market penetration and market development strategies.

Anso Matrix

1.2 Market development

In market development strategy, a rm tries to expand

1.3 Product development

Anso, in his 1957 paper, provided a denition for

This involves extending the product range available to the

In market penetration strategy, the organization tries to

[1] Quick MBA: Anso Matrix. quickmba.com. Retrieved

Text and image sources, contributors, and licenses

Anso Matrix Source: https://en.wikipedia.org/wiki/Ansoff_Matrix?oldid=710007701 Contributors: Bearcat, Hooperbloob, Ajuk,

File:Ansoff_Matrix.JPG Source: https://upload.wikimedia.org/wikipedia/commons/b/bc/Ansoff_Matrix.JPG License: CC BY-SA 3.0

Creative Commons Attribution-Share Alike 3.0

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