Igor Ansoff created the Product / Market diagram in as a method to classify options for business expansion. The simplisity of this model is. Learn how to apply Ansoff’s Matrix to understand the risk of different strategic Sometimes called the Product/Market Expansion Grid, the Matrix (see figure 1. The Product Market Expansion Grid, also called the Ansoff Matrix, is a tool used to develop business growth strategies by examining the.

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And by moving two quadrants and targeting a new market with a new product, you increase your risk to yet another level. Even so, Coca-Cola would not be the power house it is today without knowing mraket to step out of its comfort zone — the Glaceau acquisition being a clear case in point.

Igor Ansoff’s Product-Market Expansion Grid

The launch of Coke Zero in was a classic example of this — its concept being identical to Diet Coke; the great taste of Coca-Cola but with zero sugar and low calories. It assumes that an innovation will be accepted by the organization’s existing customer group. The company has since gone on to successfully launch other flavoured variants including lime, lemon and vanilla.

To make this website work, we log user data and share it with processors. Develop related products or services for example, a domestic plumbing vrid might add a tiling service — after all, qnsoff customers who want a new kitchen plumbed in are quite likely to need tiling as well!


This strategy assumes that existing markets are fully exploited or that new markets can be developed concurrently with existing markets. If you wish to download it, please recommend it to your friends in any social system.

My presentations Profile Feedback Log out. Offensive reasons may be conquering new positions, taking opportunities that promise greater profitability than expansion opportunities, or using retained cash that exceeds total expansion needs. Describe Ansoff matrix Igor Ansoff developed a strategic decision-making tool Ansoff matrix to analyze the different options.

Leave a Reply Cancel reply Enter your comment here Coca-Cola generally avoids risky adventures into unknown territories and can instead utilise its brand strength to continue growing within the drinks industry. Within each strategy there is a differing level of risk. The long term viability of hospitals, clinics, home health agencies and other healthcare entities largely depends on the successful identification and exploitation of growth opportunities.

Market Penetration Market penetration is a growth strategy that seeks to increase the use of current product offerings espansion current customers. We think you have liked this presentation. Imitation with a Twist. I will be reading the case study on Virgin after this.

Igor Ansoff’s Product-Market Expansion Grid

An organization’s current product can be changed improved and marketed to the existing market. However, you expose yourself to a whole new level of risk markt either moving into a new market with an existing product, or developing a new product for an existing market.


Increase your sales force activities. Therefore, the company puts itself in a great uncertainty.

Defensive reasons may be spreading the risk of market contraction, or being forced to diversify when current product or current market orientation seems to provide yrid further opportunities for growth.

I found it a very good case study that used simple but relevant language to explain the Ansoff Ansofff. The product can also be targeted to another customer segment. It involves increasing market share within existing market segments. Local market expansion Phase 3: By focusing on new products and new markets, this strategy calls for organizations to enter completely unfamiliar territory.

THE ANSOFF MATRIX The Ansoff Matrix (Product/Market Expansion Grid) was invented by H. Igor Ansoff.

That said, there is no one best strategy to select, with each offering different benefits to companies in various circumstances. International development phases Phase 1: Competition levels and amount of resources available need also to be taken into account.

Horizontal integration epansion to a strategy of selling ownership or.

The product-market expansion grid consists of a vertical axis representing markets current and newa horizontal axis representing products current and newand four cells that identify the four basic growth alternatives: You are commenting using your Twitter account.