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CSM Notes 7 - Ansoffs Matrix
CSM Notes 7 - Ansoffs Matrix
Market penetration
Market penetration, by which the organisation takes increased share of
its existing markets with its existing product range, is on the face of it the
most obvious strategic direction. It builds on existing strategic capabilities
and does not require the organisation to venture into uncharted territory.
The organisation’s scope is exactly the same.
For Sony, such product development would include moving the Walkman
portable music system from audio tapes, through CDs to MP3-based
systems. Effectively the same markets are involved, but the technologies
are radically different.
Market development
Market development involves offering existing products to new
markets. Again, the extension of scope is limited. Typically, of course, this
may entail some product development as well, if only in terms of
packaging or service.
Diversification
Diversification is strictly a strategy that takes the organisation away
from both its existing markets and its existing products.