Igor Ansoff's Strategies to Grow Flashcards
What are the strategies for?
For growing
What are the four strategies?
Market penetration
New product development
Market development (extension)
Diversification
What is market penetration?
Trying to increase your market share in your existing market.
Where does market penetration work best?
In growing markets
What are some of the methods to achieve market penetration?
Sales promotion, pricing strategies and advertising
What is product development?
It is selling new products in your existing markets
When does product development work best? 4
When the market has good growth potential
The business has high market share
Strong R&D
Good competitive market
What is market development?
Selling existing products to new markets.
How can market development be achieved?
Through repositioning (focusing on different segment of the market)
How can businesses sell to different market segments?
Through using new channels of distribution (e-commerce to sell directly to customer)
What is diversification
Selling new products to new markets.
Why is diversification risky?
As it involves moving into markets that the business may have no experience of.
When is diversification used? 2
When a biz needs to reduce their dependence on a limited product range.
Or if high profits are likely
