Page 72 - BA1 Integrated Workbook STUDENT 2018

Chapter 7

Ansoff’s matrix

This model looks at potential strategic directions that the business can take to grow.

Product

Current New

Market
Product
Current Penetration Development
Market

Market
New Development Diversification

Diversification is typically seen as the riskiest of the four strategies. If it is adopted it
can take one of two main forms:

 related diversification – growth into similar industries to current operations

 unrelated (conglomerate) diversification – growth into completely new
markets or industries.

Illustrations and further practice

Now review Illustration 4 and TYU 4 and 5 in Chapter 7 of the text.

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