Ansoff matrix in business strategy
How does the Ansoff matrix guide business growth strategies?
The Ansoff matrix guides business growth strategies by providing a framework to explore growth opportunities. It identifies four strategies: market penetration, market development, product development, and diversification. The matrix helps businesses assess risk, prioritize growth options, and align strategies with market conditions and organizational capabilities.
What are the four growth strategies in the Ansoff matrix?
The four growth strategies in the Ansoff matrix are market penetration, market development, product development, and diversification. Market penetration involves increasing market share by selling more of the existing products/services to existing customers. Market development entails entering new markets with existing products/services. Product development focuses on introducing new products/services to existing markets. Diversification involves entering new markets with new products/services. These strategies provide businesses with different avenues for growth and expansion, depending on their objectives and the competitive landscape.