What Is Ansoff Matrix

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The Ansoff Matrix, which is designed by Igor Ansoff, classifies and explains different growth strategies for a company (Team FME, 2013). This matrix is used by companies that have a growth target or a strategy of specialization. This tool, which allows making a cross analysis of the products and markets of a company, facilitates decision making.
The Ansoff matrix offers four strategies to achieve objectives:
• Penetration of the market;
• Extension of the market;
• New products;
• Diversification. Figure: Ansoff Matrix
4.10.1 Defining the quadrants Market Penetration Strategy
The main role of this strategy is to concentrate on the selling of the already existing services and products into the market so that market share can be …show more content…

• It has four different kinds of strategies that can help to achieve this: new geographical markets; new product scopes and its packaging; new channels used for distributions; with the help of new pricing, new market segments can be created.
• The biggest threat this strategy can bring is the estranging of the current customers. Product development strategy
This growth strategy needs variations in business operations, for example R&D research and development techniques so that new products can be introduced to the existing customer base.
Being a part of the successful strategy to develop the product and the business, your major role is to appreciate the new emphasis that is placed on marketing. This is helpful for you in evaluating the consequences of the changes that have happened in the following areas:
• Requires research and development
• Requires assessment of customer needs
• Requires a clear path for brand extension
Key Points
• This strategy involves the development of the new products and the services in the current

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