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Ansoff's Matrix

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Ansoff's Matrix
ANSOFF’S MATRIX
Product and Growth Matrix

Ansoff’s Matrix
• Developed by Igor Ansoff
• Explains different growth strategies for a company via

existing products and new products, and in existing markets and new markets
• Used after having the SWOT Analysis
• Suggests for possible strategies: Market Penetration,

Market Development, Product Development and
Diversification

Existing Products

New Products

Established
Market

Market
Penetration

Product
Development

New Market

Different Growth Strategies

Market
Development

Diversification

Market Penetration
Aims

•Focus on selling your existing products or services to existing markets to achieve growth in market share

Risk

Low

Profits

Low

•Maintain or increase the market share of current products Approaches • Secure dominance of growth markets
•Restructure a mature market by driving out competitors
•Increase usage by existing customers
Requires

•Detailed market
•Competitor intelligence

Market Development
Aims

•Focus on selling your existing products or services to new markets

Risk

Moderate

Profits

Medium

•New Geographical Markets
Approaches •New product dimensions or packaging
•New distribution channels

Requires

•Detailed market and competitor intelligence
•Well-researched market, financial and operational data

Product Development
Aims

•Focus on developing new products or services to existing markets

Risk

Moderate

Profits

Moderate

•New product is closely associated with current product
Approaches •Matches current customers’ purchasing habits
•Reinvents or refreshing existing products

Requires

•Research and Development
•Assessment of customer needs
•Clear path for brand extension

Diversification
Aims

•Focus on selling new products or services to new markets Risk

High

Profits

High

•Honest assessment of risks
•Access to capital and willingness to invest
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