Ansoff Matrix
Is your business revenue growth
rate below your expectations?
Are you planning to :
·
sell more in the existing market?
·
enter into a new market?
·
develop a new product? or
·
move away from the existing core business?
If your answer is Yes, then this analytical tool is definitely useful to
you.
This is a 2 by 2 matrix, which offers, 4 different business growth
options for business organizations.
Guess, what we are talking about!
In this blog post, I am talking
about, business analytical tool, the Ansoff
matrix.
The Ansoff Matrix is a strategic planning
tool that provides a framework to help executives, senior managers, and
marketers devise strategies for future growth. It is named after Russian
American Igor Ansoff, an applied mathematician, and business
manager, created the concept.
There are four possible growth strategies!
Market penetration, Here business firms seek to achieve a growth rate with existing products in their current
market segment. This is the least risky strategy.
Market Development, here firms seek to achieve growth by selling existing products in the new market segment.
Product development, here, firms
seek to achieve growth by offering new
products in the existing market segment., and finally,
Diversification, his strategy focuses on reaching new markets
with new products. Diversification can be either related, or unrelated.
To sum it up,
Ansoff matrix offers, four different growth options:
1.
Market penetration.
2.
Market Development.
3.
Product Development, and
4.
Diversification.
If
you find this blog post is useful, please post your comments below.