Business
Growth Hub
12
Factsheet
Growth Strategy
- Ansoff Matrix
You would use this approach to develop
your growth strategy.
Projected performance gains
Improved Reduced Simplify
• process to replenish • the risk of • the flow of production
lineside parts and overproduction information – no
subassemblies computers or paperwork
What investment is needed to understand the concept?
DIFFICULTY ACTIVITY EQUIPMENT
Medium Team None
Requires some reading Best results come from No equipment is
around the subject and the management team needed in this activity.
a structured approach. working together.
For more advice, case studies and additional factsheets visit: www.businessgrowthhub.com/manufacturing
Growth Strategy – Ansoff Matrix Factsheet 12
Explanation of the concept
An Ansoff matrix is a tool which helps you see the possible As an example, a product or product family may already
growth strategies for your business. be in production, but there may be an opportunity to
start selling into a new market. The matrix would help
Academic Igor Ansoff proposed that product marketing
to identify this opportunity and encourage exploration
strategy was a joint work of four growth areas: market
into this opportunity. Another opportunity may exist to
penetration, market development, product development,
sell a new product into an existing market.
and diversification. When displayed visually, these four
areas create the Ansoff Growth Matrix. The matrix shows
the proposed strategy in each of the four boxes.
Markets
Existing New
Market Penetration: Market Development:
Existing
increasing sales in finding new markets for
existing markets existing products
Products
Product development: Diversification:
New
creating new products for creating new products
existing customers for new markets
What action should I take?
1. 2. 3. 4.
“ Action 1
Action 2
“ Action 3
Gather together the Using the template Use the matrix to identify Develop a plan to
senior team and / or explain the concepts potential additional investigate the potential
your marketing team. behind the Ansoff Matrix. sales opportunities. growth opportunities.
For more advice, case studies and additional factsheets visit: www.businessgrowthhub.com/manufacturing
Growth Strategy – Ansoff Matrix Factsheet 12
Recommended resources
Francis, B. (2016). Ansoff Matrix in your Pocket. Create Space Independent Publishing Platform.
ISBN: 978-1522847618
The Ansoff Matrix:
https://www.youtube.com/watch?v=4dKliWrCywM
GC Business Growth Hub Factsheet 23: The Kano Model
Glossary
Market Penetration: Selling existing products or services into your existing markets to grow market share.
This is a low risk growth strategy.
Market Development: Selling existing products into a new market, such as a new supply chain or launching internationally.
Product Development: This growth strategy means launching a new product into an existing market,
and is often undertaken by firms with a high market share.
Diversification: Launching new products into a new market is a high risk strategy
For more advice, case studies and additional factsheets visit: www.businessgrowthhub.com/manufacturing
Business
Growth Hub
Markets
Existing New
Market Penetration: Market Development:
increasing sales in existing markets finding new markets for existing products
Existing
Growth Strategy – Ansoff Matrix
Products
Product development: Diversification:
creating new products for existing customers creating new products for new markets
New
For more advice, case studies and additional factsheets visit: www.businessgrowthhub.com/manufacturing
Factsheet 12
