Ansoff Matrix- Growth Tool for Your Business


                                                          Original Content: Business Upside

Business entities that have flourished and succeeded in their ventures are the ones that well understand the risks of becoming stagnant. A unique aspect of all these successful businesses is that they are constantly trying to better their performance by adopting newer strategies that promise to deliver. So, where does the Ansoff Matrix fit into the puzzle? This is exactly what we will focus on in this brief write-up.

Role of Ansoff growth Matrix in your business

When you are trying to work out strategies to better your productivity and get the best returns from your marketing efforts and investments, you plan to adopt several options. These options might include stuff like creating new products and services, making inroads into newer vistas or markets, and increasing your efforts to connect better with your target audience. 

The Ansoff Matrix analysis tool will help you to weigh the pros and cons of situations that might arise with every strategy you try to implement. 

The Ansoff Growth Matrix is a tool that will help you to assess the amount of risk that you are susceptible to for each approach that you intend to take. So, let us understand the tool better. 

What is Ansoff Matrix? 

Developed by H. Igor Ansoff and came to be known for the first time in the Harvard Business Review 1957, in “Strategies for Diversification”, it can help you to ascertain the extent of risk of growths. 

Also known as Product/Market Expansion Grid, according to the Matrix, there are four strategies that you can make use of for growth. And the best part is that it not only offers the ideas of the four strategies but will also let you know the risks that are associated with each strategy that you go ahead with. 

The four strategies as per the Market growth Matrix include the following-

  1. Market Penetration
  2. Market Development
  3. Product Development
  4. Diversification

Let us understand each strategy in brief in the paragraphs that follow. 

1. Market Penetration

This is the first strategy as per the product growth Matrix. This is a strategy in which you try to win over new markets but with the help of the products that you already have. The main aim of the strategy is to improve your stake in the market or rather increase your market share. It involves the lowest risk in the Ansoff product-market Matrix. 

The formula for calculating market penetration is as follows-

Market penetration= (number of own customers/number of potential customers in the market)*100.

The degree of market penetration is inversely proportional to the remaining growth potential. 

Read More

Comments

Post a Comment

Popular posts from this blog

Image
  Ashwagandha Powder for Beauty Power   Ashwagandha supplements  majorly benefit us in our everyday lives. However, among all the work pressure, and in the middle of striking a balance of semblance between our body and mind, do we think about Beauty enhancement enough? This article will tell you about how  Ashwagandha  oil or  Ashwagandha powder  can give you parlour-like benefits on a minimal budget.    How Does Ashwagandha Benefit the Hair?    As you all are aware,  Ashwagandha  is famously known for possessing very powerful antioxidant and anti-inflammatory elements. These are two elements that actively help in keeping your scalp healthy. As per sources,  Ashwagandha powder  essentially supplies flavonoids. These flavonoids generally possess:   ·          Fatty acids ·          Potassium ·    ...
Read more

Fruition of Apple Cider Vinegar? See yourself!

Image
  Despite all odds and challenges this year, America is all set for the ensuing year-end festivities. And since food and drinks make for an essential component of all celebrations—the apple cider vinegar is omnipresent this time of the year—a mainstay of festivals and the farmers’ market. In modern times, apple cider vinegar or just cider vinegar , as it is often referred to as, is widely known for its medicinal purposes. Researches across the globe have time and again proved the health benefits of apple cider vinegar and certified nutritionists also suggest drinking apple cider vinegar occasionally. However, have we ever thought about, how this drink came into being? Or what are its origins, history or, even evolution? Well, why not take a sneak peek into the historical narratives that gradually led to the establishment of apple cider vinegar drink as a popular beverage, especially owing to the numerous acv benefits.   Origins and Folklore According to anc...
Read more
Image
  Color psychology meaning and interesting facts Colors make the world look beautiful. The first thing a child learns is to identify different colors that are around it. However, there are some interesting facts that we do not know about colors. The world of colors and their meaning have opened up a new way of looking at them. The color psychology meaning points towards how specific colors evoke different emotions in us. This article will make a list of all the exciting facts about colors.   Interesting facts about color psychology and their meaning: ·          Colors have the power to evoke different emotions. Did you know that colors have the power to play tricks on your mind? The psychological meaning of colors points towards the fact that different colors evoke different emotions. For example, red makes one feel excited or warm, or sometimes angry. Big companies like Coca Cola or KFC use the color red to excite their custome...
Read more