Ansoff's Strategies for Strategic Growth
- Created by: tanja soulsby
- Created on: 31-05-17 13:24
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- Ansoff's Strategies for Strategic Growth
- Market Penetration
- Trying to increase your market share in your existing market
- Sales promotions
- Pricing strategies
- Advertising
- Works best in a growth market, not in saturated markets where demand for the product has stopped growing
- Trying to increase your market share in your existing market
- New Product Development
- Selling new products in your existing markets
- Best when the market has good growth potential
- High market share
- Strong R&D
- Good competitive advantage
- Market Development / Extension
- Selling existing products in new markets
- Can be done through repositioning
- Focusing on a different segment of the market
- Need to research target market segment and work out how they can adapt their product/promotion to suit its needs
- Might involve creating a new advertising campaign or promotion targeting new audience
- Businesses can target different market segments by using new distribution channels
- E.g. E-commerce
- Can also be done by expanding into new geographical markets to exploit the same market segment
- Diversification
- Selling new products to new markets
- Very risky strategy
- Involves moving into markets the business may have no experience of
- Used when
- A business needs to reduce their dependence on a limited product range
- Reduces the risk
- High profits are likely
- Reduces the risk
- A business needs to reduce their dependence on a limited product range
- Market Penetration
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