The Ansoff Matrix
What Is the Ansoff Matrix?
The Ansoff Matrix is a strategic planning tool that helps businesses identify and evaluate potential growth opportunities. It is a framework for businesses to help them decide which strategies to employ to increase their sales and profits. The Ansoff Matrix breaks down four different growth strategies for a business to pursue: market penetration, market development, product development, and diversification. Each strategy carries with it different levels of risks, rewards, and potential success.
🚄 Market Penetration
Market penetration is the least risky strategy. It focuses on increasing sales by selling an existing product into an existing market by boosting focus on marketing, or buying out the competition.
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Market Penetration Strategy #1
Market Penetration Strategy #2
Market Penetration Strategy #3
⬆️ Market Development
Market development strategy is the second least risky one. It is focused on pushing the existing products into a new market. This can be achieved by expanding into a foreign market, or finding a different customer base for your product.
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Market Development Strategy #1
Market Development Strategy #2
Market Development Strategy #3
📦 Product Development Strategy
This strategy is the riskier one as it focuses on delivering a new product to your existing customer base. This can be done either by investing in R&D of a new product or buying rights to a new product.
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Product Development Strategy #1
Product Development Strategy #2
Product Development Strategy #3
💫 Diversification Strategy
The diversification strategy is generally the most risky one, because it relies both on market and product development. An example can be a computer company deciding to use their expertise in microchips to expand into the car market.
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Diversification Strategy #1
Diversification Strategy #2
Diversification Strategy #3