Ansoff's matrix Flashcards
What is Ansoff’s matrix?
Matrix showing strategic growth and risk with axis of markets and products
What is market penetration?
Selling more of the same product to the same market
Cadburys selling more of their bars to the same customers
Needs a growing market or competitive advantage
Research opinions and present benefits through advertising
new uses or size
benefit from purchasing eos
lowest risk
What is market development?
Selling the same products to a new market
Assumes market can be profitable
1 unknown so medium risk
Target new segments e.g., geographical
New distribution channels e.g., e commerce
Risky if cultural differences
Dependent on customer needs
e.g. Lynx women’s range
What is product development?
Selling new products to the present market
1 unknown means medium risk
could be new materials or features
e.g., apple pro, max,mini
requires research and development
plays to strength
customer base needs to respond positively
What is diversification?
Selling new products to new markets
High risk as 2 unknowns
requires r and d
spreads risk (eos)
used when market is saturated
extend brand or acquire existing business
related (similar market) warbutons cakes
unrelated (not similar) unilever
riskier if unrelated
