How Ansoff Matrix can help you choose a market strategy? This matrix has been developed by Igor Ansoff to help companies which need to choose a corporate level strategy.

1. ANSOFF MATRIX PRACTISE
CHOOSING MARKET/PRODUCT STRATEGY

2. ANSOFF MATRIX
shows you where You should focus:
Market(s) or Product(s)
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3. ANSOFF MATRIX EXISTING PRODUCTS NEW PRODUCTS
EXISTING MARKET Market Penetration Product Development
NEW MARKET Market Development Diversification

4. MARKET PENETRATION
You’ll play in existing market(s) with existing
product(s) by taking minimum risk. You know
the market, also your customers. And They
know your products. All you need is trying to
increase your selling performance.
PRODUCT DEVELOPMENT
You should concentrate developing new
products first. Research and Development
procecces will be extremely important.
MARKET DEVELOPMENT
Your existing products will be sold ina a new
market. All your efforts should aim to focus
marketing operations.
DIVERSIFICATION
That is most riskful option. You are entering in
a new market with your new products. You’ll
need more budget both R&D procceses and
marketing operations.

5. LET’S SEE AN EXAMPLE

6. SCENARIO :
01 YOU ARE PRODUCING SMALL ELECTRONICS
02 YOU HAVE CAPABILITY TO PRODUCE SMARTPHONES AND TABLETS
03 YOUR SELLING OPERATIONS ARE BASED IN ASIA
04 THERE IS A POSSIBILITY TO ENTER THE EUROPEAN MARKET

7. MARKET PENETRATION
●
Increase your marketing and advertising budget
●
Develop customer loyalty programs
●
Decrease prices to take advantage against competitors

8. PRODUCT DEVELOPMENT
●
Expand your R&D Department and increase its budget
●
Hire new staff who experienced on smartphones & tablets
●
Create aggressive marketing campaigns for new products
●
Keep your existing customers informed of new products

9. MARKET DEVELOPMENT
●
Create segmentations specific to the Eerupean Market
●
Cooperate with local vendors in each European Country
●
Create marketing campaigns for new products
●
Open an online e-commerce website dedicated to your
Eurepean Operations

10. DIVERSIFICATION
●
Expand your product range with phones and tablets (related
diversification)
●
Expand your marketing and advertising budget.
●
Set up a new department for European Operations with
experienced staff

11. IMPORTANT!
This is a very simple scenario. Beyond a
daubt, companies are facing more
complicated problems while expanding
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12. THANKS FOR READING!