Ansoff Matrix Flashcards
What is the ansof matrix
It’s a strategic planning tool that managers use to identify potential growth strategies for a business and is mainly concerned with strategic direction
The 4 growth strategies
Market penetration
Product development
Market development
Diversification
Market penetration
Selling an existing product in an existing market
Least risky
Product development
Selling new products in existing markets
Market development
Selling an existing product in a new market
Diversification
Selling new products in a new market
Most risky
Market penetration strategies
Attracting customers who have not yet become regular users
Attacking competitors’ sales.
Increasing consumption amongst existing users, perhaps by reducing the price or offering promotions.
Two broad market development strategies
Identifying users in different markets with similar needs to existing customers
Identifying new customers who would use a product in a different way.