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The Ansoff Matrix - Coggle Diagram
The Ansoff Matrix
Growth strategy
Market penetration
Grow by selling more products to current markets
Ways to do this
Entice customers away from competitors
Encourage existing customers to become more frequent users
Acquire a competitor
Market development
Grow by seling existing products to new markets
Ways to do this
Enter new territories
Creating new product dimensions
New distribution channels
Create products targeted at different market segments
Product development
Grow by selling new products to existing markets
Ways to do this
Investment in research and development
Buying the rights to someone else’s product
Bring out new product updates
Diversification
Grow by offering new products to new market segments
Types of diversification
Related diversification
Unrelated diversification
Example: McDonald’s
Market development
Offer online ordering by partnering with Uber Eats or similar
Allow online payment with the most popular cryptocurrencies
Market penetration
Reduce the price of one specific burger and aggressively advertise the discount
Product development
Introduce a new vegan burger product
Diversification
Related Diversification:
Selling mushroom burgers into Vietnam
Unrelated Diversification:
Offering merchandise such as t-shirts and stationary in Vietnam
Advantages & Disadvantages
Advantages
Easy to understand
It ensures all four growth strategies are considered
It forces organizations to consider the risks associated with each option
Disadvantages
Doesn't take any account of what your competitors are doing
Doesn't say how to weigh up the risk-reward profile of each of the different options.