To remain competitive, companies must constantly adapt to changing market conditions. One tool that can help with this is the Ansoff matrix. We tell you how to build it, share templates and give examples of the Ansoff matrix.
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The Ansoff Matrix is a strategic planning tool that helps to identify the most promising vectors of business development.
It was developed by Igor Ansoff in 1957, and since then the tool has been used in bulgaria phone number list marketing and management. Sometimes it is called differently: the product-market portfolio matrix.
The basic idea of Ansoff's matrix was that a business could develop in four main directions:
Current Market and Current Product. This direction involves expanding the sales market for an existing product. For example, a company may launch an existing product for a new consumer segment. This is a market penetration strategy.
New market and existing product. In this case, the company offers an existing product in a new market. For example, a smartphone manufacturer in China can sell the product online or in new countries. This is a market development strategy or an expansion strategy.
Current Market and New Product: A company develops a new product for an existing market. Let's say a smartphone manufacturer in China starts making wireless headphones. This is a product development strategy.
New market and new product. This is the riskiest direction, which involves developing and launching a new product for a new audience. For example, a smartphone manufacturer in China is launching the development of wireless headphones for the Russian market. This is a diversification strategy.
The Ansoff matrix allows you to choose the optimal development vector, which depends on the company's goals, its resources and capabilities, and the market situation. Igor Ansoff's matrix helps to analyze all these factors and make an informed decision on choosing a business development strategy or marketing strategy.