The Ansoff Matrix Flashcards
The Ansoff Matrix (1957)
A decision making tool used to devise various product and market growth strategies, depending on whether businesses want to market new or existing products in either new or existing markets.
Diversification
is a growth strategy in the Ansoff Matrix, which involves an organisation launching new products in new markets
A holding company (or parent company)
A diversified business that owns a controlling interest in other diverse companies
Market development
A growth strategy in the matrix that focuses on using customer loyalty to persuade current and prospective customers to purchase a new product
from the business. (For example, If we already shop at M&S but they don’t offer percy pigs in the UAE when they do in M&S in other countries, if they started selling them here that would be an example of market development. Purchasing of them in the UAE would make us new customers from this region of that product that already exists).
Market penetration
A growth strategy in the Ansoff matrix that focuses on developing existing markets with existing products, in order to increase the firm’s sales revenue and market share.
Product development
A growth strategy in the Ansoff matrix that involves introducing new products to existing customers by developing or replacing current products.
