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Business
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| Number of pages / Number of words: |
12 / 3221 |
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The Ansoff matrix is used as a model for setting objectives along with other models like Porter matrix, BCG, DPM matrix and Gap analysis etc. The Ansoff matrix is also used in marketing audits (Li et al, 1999). The Ansoff matrix entails four possible product/market combinations: Market penetration, product development, market development and diversification (Ansoff 1957, 1989)...
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The four strategies entailed in the matrix are elaborated below.
Ansoff Product-Market Growth Matrix
Source: Ansoff (1957, 1989)
Market penetration
Market penetration occurs when a company penetrates a market with its current products. It is important to note that the market penetration strategy begins with the existing customers of the organisation...
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