What is an Ansoff Matrix?

The Ansoff Matrix was developed by H. Igor Ansoff. The Ansoff Matrix, also called the
Product/Market Expansion Grid, is a tool used by firms to analyse and plan their strategies for growth.
The matrix shows four strategies (Market Penetration, Product Development, Market Development and
Diversification) that can be used to help a firm grow and also analyses the risk associated with each
strategy. 
What is Market Penetration?
In a market penetration strategy, the firm uses its products in the existing market. In other
words, a firm is aiming to increase its market share with a market penetration strategy.
The market penetration strategy can be executed in a number of ways:

1. Decreasing prices to attract new customers

2. Increasing promotion and distribution efforts
3. Acquiring a competitor in the same marketplace

What are the steps in strategic planning?

The strategic planning gives you a place to record your mission, vision and values, as well as your
long-term goals and the action plans you’ll use to reach them.

1. Determine your strategic position.

2. Prioritize your objectives.
3. Develop a strategic plan.
4. Execute and manage your plan.
5. Review and revise the plan.