Corporate-level strategy

The product-expansion grid

is Ansoff’s matrix used to show four

main directions of growth using the terms market penetration, product
development, market development, and diversification.
How do we use it?

The first step is to analyze the way a company

operates and acess which products can be successfully
developed further which are becoming unprofitable
and should be withdrawn .
Then we acess the possibilities of developing new
products and the chances of successfully introducing
them to the market
Market penetration
Market development

introduces an organization’s existing products

and
services into new markets.
Product development
Diversification

involves introducing new products and services

into
new markets.
Prospectors, analyzers, defenders, and
reactors
The first is entrepreneurial – how to choose a
general and target market; the

second is an engineering matter –