Ansoff Matrix

This matrix was developed by gor Ansoff

t is a framework for identifying corporate growth
opportunities
Two dimensions determine the scope of
options,namely products and markets
Four generic growth strategies are identified:
Market penetration: more of the same to the same
customers
Market deveIopment: new customers for existing
products
Product deveIopment: new products for existing
customers
Diversification: new products and new customers
The greater the degree of newness the
greater the risk
Hence:
Market penetration - little risk involved
Market development - moderate risk
Product development - moderate risk
Diversification - high risk because both
product and market are new and unknown
Ansoff's matrix and risk
Market penetration
ncrease in its share of the grocery business at the expense of
Sainsbury's and Asda
Market development
Movement into the convenience store market
Expansion abroad
Product development
Expansion into petrol sales
Development of financial services
Diversification
Today Tesco is so all embracing that diversification would have to
involve something entirely outside Tesco's current range of activities
and sold in foreign markets or to business customers
Present Product New Product
Present
Market
Market Penetration: Hotels,
Grocery Stores, Schools,
Businesses, ndustries
Cafeteria and Airlines.
Product Development: Salads
and New bold Fresh lunch
Program. Examples: Fiesta
Chicken Salad, and Fruit and
Cheese Platter.
New Market Market Development:
Open Stores all over the
world.
Brazil, Russia, Romania, as
well as putting the first
Starbucks logo in Cairo Egypt
Diversification: Music CDs,
Clothing, Coffee Mugs, and
Chocolate.
MARKET PENETRATON:The new campaigns, featuringAmitabh Bachchanand,for the first time,Vivek Oberoi,makes an aggressive attempt to establish the
relevance of Chyawanprash in an increasingly tough and demanding lifestyle, for the entire family. Asa market leader, DaburCs focus has been to increase the relevan
this time-tested andproven product in the family - both for users and non users - and increase penetration. ntheir new campaign they have tried to establish the fact that
Chyawanprash, with its Cwell- beingC properties, gives an edge to the users and dispel the myth that it should beconsumed in illness or is meant only for Children or th
aged.MARKET DEVELOPMENT:Dabur has identifiedexportsas a major thrust area for the future. An international business division has been set up within the company
topromote exports and it expects this business to grow steadily in the coming years. Thecompanyplans to focus on Russia and CS countriesalong withAfghanistan,
West46ndies and the Asia Pacific region. t has also entered the North American markets byappointing distributors and initiating marketing of products to the ethnic ndian
segment.The company has already been exporting hair oils, shampoos and Hajmola candies toAfghanistan. n Bangladesh, Dabur is entering into a joint venture with a local
partner tomanufacture and market its products. Dabur will hold a majority stake in this jointventure