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    Ansoff's Growth Matrix

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    Ansoff's Growth Matrix

    Uploaded by

    s2022005053
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    Ansoff’s Growth Matrix

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    36 views23 pages

    Ansoff's Growth Matrix

    Uploaded by

    s2022005053

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 23

    Ansoff’s Growth Matrix

    One of the most useful tool for Business Managers who look for
    growth opportunities by analyzing potential strategies based on
    the existing Products and Markets.
    The Ansoff matrix is a model used to
    identify revenue-producing
    opportunities for business.
    Sometimes called the product/market
    matrix, it's designed to help
    companies plan new growth
    strategies. With a strong emphasis on
    growth, the Ansoff strategic
    opportunity matrix is one of
    marketing's most popular models. The Ansoff matrix is a strategic
    planning tool that provides a
    framework to help executives, senior
    managers, and marketers devise
    strategies for future business growth
    Difference Between BCG Matrix and Ansoff Growth Matrix
    The Ansoff matrix is a strategic planning tool that helps
    you decide what kind of growth strategy to pursue, while
    the BCG matrix is a portfolio analysis tool that helps you
    decide how to allocate resources among your existing
    products

    The Boston Matrix focuses on products, and the


    Ansoff Matrix adds in the market as well. Taken
    together, they can provide a useful support for
    decision-making
    PRODUCTS
    EXISTING NEW
    E
    X
    I MARKET PRODUCT
    S PENETRATION DEVELOPMENT
    T
    STRATEGY STRATEGY
    MARKETS

    I
    N
    G

    MARKET
    N
    DIVERSIFICATION
    E DEVELOPMENT
    W STRATEGY
    STRATEGY
    1 - MARKET PENETRATION
    The market penetration quadrant of the Ansoff matrix helps you determine
    strategies to sell more of your existing products or services to your existing
    customer base through aggressive promotion and distribution. Using this strategy,
    the organization tries to increase its market share in its current market.
    LOW RISK

    For example, if there are 300 million people in a country and 65 million of them
    own cell phones, the market penetration of cell phones would be approximately
    22%. In theory, there are still 235 million more potential customers for cell
    phones, or 78% of the population remains untapped.
     Improving Product Quality.
     Expanding Distribution Channels.
     Increasing Market Efforts
     Offering Promotions.
     Reducing Prices.
    CocaCola
    Mc Donalds
    2 - Market Development
    A market development strategy is a growth strategy that a business
    adopts to help introduce its existing products in a new market. An
    example of market development is a software company that decides to
    sell its products to a new group of customers.
    Medium Risk

    Focusses on developing new Markets or Market Segments


    for your existing products or services .
    Expanding into new Markets may mean expanding into new
    Geographics,Customer segments,regions etc.
     Expanding Geographically.
     Targeting new Demographic Segments.
     Exploring new Distribution Channels.
    Spotify
    Apple
    3 – Product Development
    Product development is one of the four growth options in the Ansoff
    matrix. It involves creating new or improved products or services for your
    existing markets. This can help you increase your market share, customer
    loyalty, and competitive advantage.
    Medium Risk.

     Research and Development.


     Innovation.
     Acquire New Technologies.
    Coca-Cola is one of the Ansoff Matrix examples that
    use the Ansoff matrix to identify its market growth
    and product development strategies. The company
    has identified untapped markets, tapping into them
    with its new products. The company is constantly
    diversifying its product line to keep up with the
    changing trends.
    Google
    Amazo
    n
    4 - Diversification
     Focus on the development of new products to sell into
    new markets.
     In a diversification,the Company enters a new Market
    with a new Product.Although such a strategy is the
    riskiest,as market and product development is
    required,the risk can be mitigated through related
    diversification.
    There are two types of diversification.

    Related : New products or Markets are somehow connected


    to the existing Business.
    Un Related : There is no connection to the current Business.
    Virgin Group

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