Ansoffs Matrix

IgorAnsoff,inhisbookCorporateStrategystatedthat
themainfactorthatbusinessesneedtoidentifya competitiveadvantage. Todothisthebusinesswillneedtoanalysewhetherthey needtocontinuewithanexistingproductorwhetherto developanewproduct.

Ansoffdevelopedtheseideasintoamatrix.Itisused heavilyasamarketingtool,butalsohasimplicationsfor thelongtermstrategiesofabusiness.

BusinessStudiesOnline:Slide1

The Matrix
ANSOFFSMATRIX
EXISTING PRODUCTS EXISTING MARKETS NEW MARKETS Market Penetration Market Development NEW PRODUCTS Product Development Diversification

BusinessStudiesOnline:Slide2

Ansoffs Matrix Explained

MarketPenetration
Astrategytoincreasesalesofanexistingproductinan existingmarket e.g.Kellogspromotingcornflakesasananytimemeal

ProductDevelopment
Developinganewproducttoexistingconsumers e.g.VauxhallintroducedthenewAstra

MarketDevelopment
Involvessellingexistingproductstonewcustomers e.g.Brylcreamisnowdesignedtoappealtoyoungerusers

Diversification
Developinganewproducttobesoldtonewconsumers e.g.QuakerlaunchingtheSnackaJackRange
BusinessStudiesOnline:Slide3