Ansoff Matrix examples are essential concepts that successful and experienced companies use to plan and implement the growth strategies they have prepared for themselves.

There are four main strategies in this matrix that help a company grow: diversification, market development, market penetration, product development.

Growth and risk are considered together.

This matrix was developed by H. Igor Ansoff and shared in the Harvard Business Review in 1957.

➤ I reviewed Ansoff’s strategies, which have been very helpful to marketers and managers in assessing the risks involved.

Ansoff Matrix Examples

Diversification

➤ The introduction of new products is at the forefront of the diversification strategy. In this context, it is crucial to introduce the relevant product and represent the company in a new or long-standing market (very rarely). In the past, only new markets were focused via this tactic.

➤ Diversification usually targets new markets. It is a perilous method, but the level of risk is reduced with market and product development strategies because a company that wants to generate a new income source can make much more dollars per person from new audiences.

➤ In this system, which contains two subsets as related and unrelated diversification, the focus is on whether there is synergy or not.

➤ If there is potential synergy between a product and a business, it falls under the category of related diversification. An example of this is that a company that sells leather wallets begins to produce leather shoes. The common point is leather accessories and their customer base.

Ansoff Matrix
The Ansoff Matrix is a helpful tool to analyze current and potential risks.

➤ If a business and a product do not have potential synergies in terms of market relationship, it is called unrelated diversification. For example, if a leather shoe manufacturer decides to produce phones, I can say that person is focused on this strategy.

Market Development

➤ Market development focuses on an entirely new market. A firm appeals to an audience that it has not previously exploited with its current products. In this context, new geographical regions, new customer segments and new conditions meet this company.

➤ An example of this is that Nike and Adidas represent themselves to the Chinese market with their existing products.

Market Penetration

➤ It is one of the most used methods by companies that desire to increase their market share.

➤ An example of this is the effort of all telecommunication companies to appeal to the same market and distribute their products to the centers and peripheral residential areas using promotional prices.

Ansoff Matrix Examples
Ansoff Matrix examples are crucial to learn these strategies!

Product Development

➤ Companies that crave to appeal to the current market aim to develop their product range with extensive market research projects.

➤ The aim here is to offer innovative solutions to meet the needs of the current market.

➤ The main principles of this philosophy are investing in R&D, acquiring relatively small and promising companies, feeding on their resources, and increasing brand awareness (via distribution channels) by establishing strategic partnerships with other companies.

Growth Secrets
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Final Words

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