Page 19 - PowerPoint Presentation

STRATEGY AND GOVERNANCE

Analytical tools for assessing the feasibility of

strategies

Ansoff’s Product-Market Growth Matrix

• The Ansoff Product-Market Growth Matrix is a tool created by
Igor Ansoff with the aim of providing entities with growth

strategies. The following represents the four strategies that

entities can persue to achieve product and market growth:

• Market penetration: Within this strategy growth is achieved without
an entity deviating from its original product market strategy i.e.
growth can be achieved by increasing sales volumes to existing
customers or by making sales to new customers.

• Market development: This entails achieving growth by entering new
markets.

• Product development: Growth is achieved by developing new
products for the existing market.

• Diversification: This entails an entity simultaneously changing its
product line and target market.

• It should be noted that practically most entities would follow
several of the above strategies at the same time.
19