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Ansoff Matrix

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Ansoff’s
Matrix

Lowest
Risk

Highest
Risk

Medium
Risk

Medium
Risk

Marketing Management
Presented to Dr. Ashraf Talaat
Prepared by Fady Wahba (Group 50H)

Ansoff Matrix:
The Ansoff Matrix was developed and named after Russian American H. Igor Ansoff and first published in the Harvard Business Review in 1957, in an article titled "Strategies for
Diversification".
It has given generations of marketers and business leaders a quick and simple way to think about the risks of growth.
Sometimes called the Product/Market Expansion Grid, the Matrix shows four strategies you can use to grow.
It also helps you analyze the risks associated with each one. The idea is that, each time you move into a new quadrant (horizontally or vertically), risk increases.
The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth.

Growth Strategies:
Ansoff, in his 1957 paper, provided a definition for product-market strategy as "a joint statement of a product line and the corresponding set of missions which the products are designed to fulfill". He describes four growth alternatives:

1

Market penetration:
In market penetration strategy, the organization tries to grow using its existing offerings
(products and services) in existing markets. In other words, it tries to increase its market share in current market scenario.
This involves increasing market share within existing market segments. This can be achieved by selling more products or services to established customers or by finding new customers within existing markets.
Here, the company seeks increased sales for its present products in its present markets through more aggressive promotion and distribution.
This can be accomplished by:
1)
2)
3)
4)

Price reduction.
Increase in

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