Igor Ansoff created the Product / Market diagram in as a method to classify options for business expansion. The simplisity of this model is. Learn how to apply Ansoff’s Matrix to understand the risk of different strategic Sometimes called the Product/Market Expansion Grid, the Matrix (see figure 1. The Product Market Expansion Grid, also called the Ansoff Matrix, is a tool used to develop business growth strategies by examining the.
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Either way, both strategies can lead to additional earnings for the business.
Igor Ansoff’s Product-Market Expansion Grid
If you wish to download it, please recommend it to your friends in any social system. Initial market entry Phase 2: Ansoff pointed out that a diversification strategy stands apart from the other three strategies. Management may expect great economic value growth, profitability or first and foremost great coherence and complementary to their current activities exploitation of know-how, more efficient use of available resources prodct capacities.
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Ansoff’s Product-Market Expansion Grid Matrix Diagram |authorSTREAM
You are commenting using your Twitter account. Competition levels and amount of resources available need also to be taken into account. Even so, Coca-Cola would not be the power expanaion it is today without knowing when to step out of its comfort zone — the Glaceau acquisition being a clear case in point.
This involves developing new products for existing markets by thinking about how new products can meet customer needs more closely and outperform competitors. It assumes that an innovation will be accepted by the organization’s existing customer group.
Horizontal integration refers to a strategy of selling ownership or. They will have expansiln ideas about things they could do, including developing new products, opening up new markets and new channels, and launching new marketing campaigns.
This will defintely helps me prepare my assignment. However, you expose yourself to a whole new level of risk by either moving into a new market with an existing product, or developing a new product for an existing market.
But how does a business decide upon the best strategy for growth? Each time one moves into a new quadrant horizontally or vertically downwards risk is increased. You are commenting using your Facebook account. To capitalize on growth opportunities, marketers must carefully formulate appropriate expansion strategies. They are Good article, Ansoff demonstrate very much clarified. With a year-on-year decline in sales of carbonated soft drinks like Coca-Cola, the brand anticipates the drinks market may be heading less-sugary future — so has jumped ,arket board the growing health drink sector.
Coca-Cola: Ansoff Matrix | the Marketing Agenda
The company has karket gone on to successfully launch other flavoured variants including lime, lemon and vanilla. An organization’s current product can be changed improved and marketed to the existing market. That said, there is no one best strategy to select, with each offering different benefits to companies in various circumstances.
Market Penetration Market penetration is a growth strategy that seeks to increase the use of current product offerings by current customers.
In order to measure the chances of success, different tests can be done: Increase your sales force activities. Defensive reasons may be spreading the risk of market contraction, or being forced to diversify when current product or current market orientation seems to provide no further opportunities for growth.
THE ANSOFF MATRIX The Ansoff Matrix (Product/Market Expansion Grid) was invented by H. Igor Ansoff.
The product-market expansion grid consists of a vertical axis representing markets current and newa horizontal axis representing products current and newand four cells that identify the four basic growth alternatives: NEW Market, NEW Product This involves the production of a new category of goods that complements the existing portfolio, in order to penetrate a new but related market.
My presentations Profile Feedback Log out. He is exxpansion to sell more of the same things to different people. It involves increasing market share within existing market segments. Healthcare marketers must strive to proactively monitor their surroundings to, among other things, detect growth opportunities that can be exploited.
The matrix helps entrepreneurs with insights on how to grow their business through existing or new products or in existing or new markets.
International development phases Phase 1: Diversification may be defensive or offensive. Diversification is the riskiest of the four growth strategies. Registration Forgot your password?
Local market expansion Phase Email required Address never made public. Brand new products may also be created in an attempt to leverage the company’s brand name.
Current products may, for example, be placed in different geographic markets or directed toward new demographic segments to stimulate demand and increase growth. By continuing to use this website, you agree to their use.