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Ansoff-Matrix

Ansoff-Matrix Abstract
The Ansoff Product-Market Growth Matrix is a marketing tool created by Igor Ansoff First published in his article "Strategies for Diversification" in the Harvard Business Review(1957). The matrix allows marketers to consider ways to grow the business via existing and/or new products, in existing and/or new markets Four strategies follow four possible product/market combinations. The matrix helps companies decide what course of action should be taken. The strategy finding is simplified by reduction of the options on four generic strategies.

Ansoff-Matrix_v1

Dr. Harald Fien

Ansoff-Matrix Abstract
Products
Present Present New

Markets

Market Penetration

Product Development

New

Market Development

Diversification

Ansoff-Matrix_v1

Dr. Harald Fien

Ansoff-Matrix Strategy Market Penetration


Existing markets, existing products Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting nonusers of your product or convincing current clients to use more of your product/service, with advertising or other promotions. Market penetration is the least risky way for a company to grow.

Ansoff-Matrix_v1

Dr. Harald Fien

Ansoff-Matrix Strategy Product Development


Existing markets, new products A firm with a market for its current products might embark on a strategy of developing other products catering to the same market. For example: McDonalds is always within the fast-food industry, but frequently markets new burgers. Frequently, when a firm creates new products, it can gain new customers for these products. It can be tried to align the products with special customer needs. New product development can be a crucial business development strategy for firms to stay competitive.

Ansoff-Matrix_v1

Dr. Harald Fien

Ansoff-Matrix Strategy Market Development


New markets, existing products The enterprise tries to offer existing products also in new markets.
Identification of new buyer groups in the present trading area. Geographical expansion of the sales activities.

For example, Lucozade was first marketed for sick children and then rebranded to target athletes. This is a good example developing a new market for an existing product.

Ansoff-Matrix_v1

Dr. Harald Fien

Ansoff-Matrix Strategy Diversification


New markets, new products Virgin Cola, Virgin Megastores, Virgin Airlines, Virgin Telecommunications are examples of new products created by the Virgin Group of UK Target was to leverage the Virgin brand. This resulted in the company entering new markets where it had no presence before. This strategy can have very attractive potential, however, realization is usually very difficult. Acquisition of knowledge is usually required. Success factor for this strategy is the identification of synergies with available competences.

Ansoff-Matrix_v1

Dr. Harald Fien

Ansoff-Matrix Lessons Learned


Explain the concept of Ansoff matrix What has to be considered for Ansoff matrix strategy market penetration? What has to be considered for Ansoff matrix strategy product development? What has to be considered for Ansoff matrix strategy market development? What has to be considered for Ansoff matrix strategy diversification?

Ansoff-Matrix_v1

Dr. Harald Fien