Ansoff’s Growth Strategy Matrix

from Cornell University’s online Marketing Strategy certificate

PRODUCT
Existing New

Penetration Product Development

Sell more of your product to existing
customers of that product. Attract
customers from your competitors
with new and improved features, a
lower price, or increase in service.
Existing
Develop a new product for customers
already loyal to your brand. This
entails additional product
development costs, but eliminates
the cost of acquiring new customers.

iPhone iPod Shuffle

Apple releases a new and Apple released the iPod Shuffle
upgraded version of the for its existing iPod customers
iPhone nearly every 12 as an option for a device that
months. Better camera, will “go anywhere.” Small,
bigger and sharper screen, wearable, and rugged for the
faster processor, faster times when you don’t want
internet connections, etc. your larger, more fragile iPod
or iPhone.

How can you update or upgrade your What new product can you offer your
existing products to increase your customers who are already loyal to
MARKET

market share? your brand?

Market Development Diversification

Introduce your existing product or Enter a new market with a completely

service to a completely new market or new offering. Doing this entails
segment. This could include a new significant costs and risk, but can be
region, country, or demographic extremely rewarding.
group.

iPod Touch iTunes

When Apple first launched
New

Apple’s iPod Touch is a

replica of the iPhone except iTunes & the iPod, it targeted
that it can’t make calls, a very large, very different
making it an ideal product group of customers from
for international markets their existing customer base
that do not have the cell of computer enthusiasts. It
phone carriers that control entered the music industry
the iPhone. in a risky, and ultimately very
profitable, move.

What markets could benefit from Is there a market with a need your
your products if given the chance to company or brand can satisfy with
purchase them? the right new product or service?

This diagram is adapted from, H.I. Ansoff, New Corporate Strategy (New York: Wiley, 1988), p. 109.

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