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DEVELOPING NEW BUSINESS IDEAS options and identify possible market gaps. Its systematic and searching
nature will undoubtedly appeal to left-brain thinkers.
This type of analysis is particularly effective at generating new
combinations of existing products or services. It is often best
complemented by divergent techniques such as boundary-hopping (see
previous chapter) or brainstorming (discussed in a later section in this
chapter) because the technique’s strength lies in its exhaustive
exploration of all conventional dimensions of a market rather than in
generating completely new dimensions.
It can be used with increasing degrees of sophistication, from a four-box
matrix in two dimensions to the equivalent of a Rubik’s Cube. We will
look at the varying degrees of sophistication in turn.
four on the flat In its most simple form, two independent variables
within a market or situation can be plotted against each other to form a
four-box matrix. We saw an example of its usefulness in the previous
chapter, where the ‘creative procrastination zone’ could be plotted
along the two axes of timing and analytical depth. The graphic
representation of the concept promotes a speed of understanding,
together with a facility to consider the different behavioural options,
which words alone would struggle to achieve.
the Ansoff Matrix The Ansoff Matrix is one of the best-known
structured guides to product and market development (see Figure 4.1).95
Business opportunities can be reduced to the two dimensions of
markets and product concepts. The technique has merit both for
existing businesses which wish to identify growth opportunities and for
individuals seeking to break into a market area.
PRODUCT
Current New
Current Market penetration Product development
MARKET Market extension Diversification
New
Figure 4.1 Ansoff Matrix for product and market development
