Ansoff Matrix

1576 WordsMay 11, 20157 Pages
Module: Betriebswirtschaftliche und volkswirtschaftliche Grundlagen Subject: Einführung in die Betriebswirtschaftslehre Semester: 1 semester, SS 2015 Module Leader: Prof.Dr.Dirk Gunther Trost Assignment title: ANSOFF MATRIX 08/04/2015 Tanju Colak AccountID: 70446465 1 Tanju Colak (70446465) – Betriebswirtschaftliche und volkswirtschaftliche Grundlagen 1. Introduction In 2003, the author Lynch suggested that the Ansoff Matrix describes the market and product choices available to a company. In this context products may be determined as items sold to customers and markets as customers. In some cases, the Ansoff Matrix is also defined as the market and product matrix. With the help of this instrument, companies can also…show more content…
3.2. Product development Another strategy for companies is to develop and provide new products within the same market. This means that the option of product development occurs when a company develops new products and then provides these within the existing marketplace. It is important to note that minor changes in existing products are not meant by new product development. This strategy only relates to new products (Lynch, 2003). In 1998, Watts et al argued that product development involves a certain risk within a market that is already used to an existing product. In this case, the Apple iPod is an excellent example. Prior to its positioning on the market, some consumers listened to music on the disc man. There were no devices that enabled consumers to listen to music without a compact disc. Due to this lack of alternatives on the market, Apple developed their innovative product, which allowed consumers to carry their music on a digital device. 3.3. Market development Market development is recommended by Ansoff to companies that strive to provide an existing product on a new market. This option often entails the sale of existing products in new geographical markets by implementing different product dimensions or developing various pricing strategies (Proctor, 2000). The main target of this strategy is to entice new customers by convincing them of the existing product (Ansoff, 1984). A good example associated with this strategy

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