➤ 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
➤ 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.
➤ 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.
✅ 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.
✅ Final Words
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