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Ansoff Matrix Presentation
Ansoff Matrix Presentation
Ansoff Matrix Presentation
Ansoff’s Matrix
• Market penetration
– Increase 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
• This involves
– Selling the same product to different people
– Entering new markets or segments with existing
products
– Gaining new customers,new segments,new markets
– Entering overseas markets
• Market development will require changes to
marketing strategy e.g. new distribution channels,
different pricing policy, now promotional strategy
to attract different types of customers
Selling the same product to a newer, expanding customer base or entering new
Contents markets with the same base. Basically gaining new customers with the same
product.
This will include changes to many different aspects of a firm, such as marketing
How is it strategies, new distribution channels, a different pricing policy and many others.
Achieved
Market Development is best used when untapped markets are beckoning, the
When to firm has excess capacity and there are attractive channels to access a new
use it
market.
An example of Market Development is when Tesco expanded into the
Examples convenience store market.
Strategy – Ansoff’s Matrix
Product Development
The aim of Product Development is to create new products for an already
Aim existing market.
The creation of new products is usually quite costly and there are moderate risk
Risks levels associated. Probably the biggest risk is will this new product be
successful.
This could be new products to replace current older ones, new innovative
Contents products, product improvements or product line extensions.
There are two main types of Market Diversification. Related and Unrelated. Related stays
within confines of the industry but beyond the present market. Unrelated is a growth in
Contents
products and markets that are completely new.
Market diversification, like product development is best used when your firm
When to use
it
have good R&D capabilities for the least risk possible.
Advantage- Disadvantage-
The main advantage is it The Ansoff Matrix is so
takes very complex simplistic that real world
business scenarios and business problems don’t fit
allows for rapid very well onto the model. It
assessment and is a good starting model but
expansion. further detail needs to be
put in afterwards.