Transcript Market Options Matrix - Guide to Business Planning

The Ansoff Matrix or Market Options Matrix
A business can be developed in
four possible directions:
Products
With all development strategies
the question of leverage of core
competencies or resources is
key. The scope for leverage is
highest for a market penetration
strategy and lowest for an
unrelated diversification strategy.
Market Penetration
 Consolidation
 Market penetration
 Sell more of the same to
the same market
Product Development
 Sell new services or
products to existing
customers
 With existing capabilities
 With new capabilities
Market Development
 New segments
 New territories
 New uses
Diversification
 Related
 Unrelated
Low
High
Scope for Leverage
© Guide to Business Planning
Scope for Leverage
Existing
New
4. Diversification, i.e. sell new
products to new groups of
customers
Markets
2. Product development, i.e. sell
new products to existing
customers
3. Market development, seek out
new markets for existing
products
New
Existing
High
1. Market penetration, i.e. sell
more of the same to the same
market
Low
Guide to
Business
Planning