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Ansoff's Matrix: Presented by:-P.Deepika Naidu Raj Patil

Ansoff's Matrix is a framework that focuses on two dimensions - products and markets. It helps analyze corporate growth strategies by categorizing opportunities as market penetration, product development, market development, or diversification. Market penetration involves increasing sales of existing products to current customers. Product development means creating new products for existing markets. Market development expands current products to new markets. Diversification is the riskiest as it involves entering markets and developing products that are new to the company. The matrix helps evaluate the risks and potential returns of different strategic options.

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164 views17 pages

Ansoff's Matrix: Presented by:-P.Deepika Naidu Raj Patil

Ansoff's Matrix is a framework that focuses on two dimensions - products and markets. It helps analyze corporate growth strategies by categorizing opportunities as market penetration, product development, market development, or diversification. Market penetration involves increasing sales of existing products to current customers. Product development means creating new products for existing markets. Market development expands current products to new markets. Diversification is the riskiest as it involves entering markets and developing products that are new to the company. The matrix helps evaluate the risks and potential returns of different strategic options.

Uploaded by

KritiYadav
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 17

Ansoff’s

Matrix

Presented by:-
P.DEEPIKA NAIDU
RAJ PATIL
Introduction:-
 Developed by Igor Ansoff.

 Framework for understanding corporate growth


opportunities.

 First published in his article "Strategies for


Diversification" in the Harvard Business Review (1957).

 This is a framework which focuses on two dimensions


namely product & market.

Wednesday, December 08, 202 IBA,Bangalore.For Academic purpose only. 2


ANSOFF’s matrix

Existing product New product


Market penetration Product
Existing Increase the sales in development
market existing market. New product
developed for
existing market.
Market Diversification
New Market Development New products sold
Existing product sold to new market.
to new market.

Wednesday, December 08, 202 IBA,Bangalore.For Academic purpose only. 3


Uses of Ansoff matrix:-

 Gives direction for exploring business.

 Systematic way to analyze business strategy.

 It also help to forecast returns and risk


involved in strategy.

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Market penetration:-

 Aim- to increase the share of current market


with existing product.

How to increase market penetration-


 Encourage increase in frequency of use.
 Attract customers away from rivals.
 Encourage non buyers to buy.
 Implement new application in product.

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Market penetration can be used when:-

 Market is not saturated.

 Growth in market.

 Competitor share of market is falling.

 There is scope for selling more to existing


customers.

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Market development:-

 Aim:-Selling the same product in a new market


or segment.

How to make market development:-


 Gaining new segments and new markets.
 Entering overseas markets.
 This requires changes to marketing strategy
such as different pricing policy, new promotional
strategy, new distribution channels.

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When to use Market
development:-
 Untapped markets are opening.

 The firm has excess capacity of production.

 If there are attractive channels to access new


market.

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Product development:-

 Aim:- to develop a new product for existing


market.

How to make product development:-


 New innovative products.
 Product improvements.
 Product at a different quality level of the
existing product.
 New product to compliment existing product.
Wednesday, December 08, 202 IBA,Bangalore.For Academic purpose only. 9
When to use product
development:-
 Competitors are having better product.

 Company having strong R&D capabilities.

 Market is growing and there is a rapid


change.

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Diversification:-

 Aim:-new products for new markets.

Diversification

Related diversification Unrelated diversification

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Related diversification:-

The new product is of same type or category


but launched in new market.
E.g. Piaggio launching 3 wheelers in India.
3 wheeler is the new product for Piaggio.
Product is an automobile.
It is launching in new market.
E.g. Dell launching its laptop in India.
It’s a type of computer.
Launching in India.

Wednesday, December 08, 202 IBA,Bangalore.For Academic purpose only. 12


Unrelated diversification:-

 The product and the market are completely


new for the company.
 Not of same category.
 Also known as “Conglomerate
diversification”.
 E.g. Kingfisher launching its new airline
services.
 E.g. ITC group coming up with stationeries
(classmate).
Wednesday, December 08, 202 IBA,Bangalore.For Academic purpose only. 13
Risk

 Market penetration:-low risk but the chances


of success are less due to competition.
 Market development:- moderate risk as
customers are not familiar.
 Product development:- new product
development is costly and moderate risk.
 Diversification:-high risk as both product and
market is new.

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Example of

Market Penetration Product development

Market development Diversification

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Example of

Market Penetration Product development

Market development Diversification

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Example of

Market Penetration Product development

Market development Diversification

Wednesday, December 08, 202 IBA,Bangalore.For Academic purpose only. 17

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