Scribd Logo
Upload

Welcome to Scribd!

  • 66 views

    Ansoff Matrix

    Uploaded by

    api-529669983
    The Ansoff Matrix identifies four strategic growth options for businesses: market penetration, product development, market development, and diversification. It analyzes a company's existing and new products and markets to determine which strategies they can use. The matrix helps generate alternative courses of action for firms to consider their growth potential in different directions based on their risk tolerance.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Ansoff Matrix

    Uploaded by

    api-529669983
    66 views7 pages
    The Ansoff Matrix identifies four strategic growth options for businesses: market penetration, product development, market development, and diversification. It analyzes a company's existing and new products and markets to determine which strategies they can use. The matrix helps generate alternative courses of action for firms to consider their growth potential in different directions based on their risk tolerance.

    Original Title

    1

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The Ansoff Matrix identifies four strategic growth options for businesses: market penetration, product development, market development, and diversification. It analyzes a company's existing and new products and markets to determine which strategies they can use. The matrix helps generate alternative courses of action for firms to consider their growth potential in different directions based on their risk tolerance.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    66 views7 pages

    Ansoff Matrix

    Uploaded by

    api-529669983
    The Ansoff Matrix identifies four strategic growth options for businesses: market penetration, product development, market development, and diversification. It analyzes a company's existing and new products and markets to determine which strategies they can use. The matrix helps generate alternative courses of action for firms to consider their growth potential in different directions based on their risk tolerance.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 7

    Ansoff Matrix

    What is the Ansoff Matrix?


    1. A model which identifies growth strategies for
    businesses based on an analysis of their
    products and their markets.

    2. It highlights four strategic options for


    organisations which can be used when
    managers have to decide what to do next.

    3. It can help you generate alternative courses of


    action for firms to weigh up against each other.
    Matrix
    Products
    Existing New
    Existing

    Market Penetration Product Development


    Markets

    Market Development Diversification


    New
    Penetration
    1. This strategy occurs when a firm tries to
    sell more of its existing products to its
    existing customers.

    2. To achieve more sales the firm may adjust


    elements of its marketing mix. E.g. it may
    increase its spending on advertising or cut
    its price.

    3. This is a relatively low risk strategy which


    can be implemented in the short term.
    New product
    development
    1. This strategy focuses on developing
    new products and offering these to
    existing customers.

    2. This strategy is risky in the sense


    that new products might fail. Only one
    in ten new products launched
    survives the first two years.

    3. However managers should have a


    good understanding of the market.
    Market development
    1. This strategy occurs when a firm
    first offers its existing products
    to an existing market.

    2. It may try to sell its product


    overseas or it may try to target
    new segments of its existing
    market.
    Diversification
    1. This strategy involves offering new product
    to new markets. E.g. a chocolate company
    may decide to diversify into the soft drinks
    market.

    2. This is a high risk strategy because the firm


    may have only a limited understanding of the
    production and marketing required of the
    new sector.

    3. If successful this will enable the firm to


    spread its risk over two markets.

    You might also like