A naukri.com initiative
Medium
2w
47
Image Credit: Medium
What the Ansoff Growth Matrix Is and How to Use It | Albato
- The Ansoff Growth Matrix, invented by Igor Ansoff, aids in assessing risks and opportunities in business growth strategies.
- It divides into four sections representing various growth paths, each with increasing risk levels.
- The matrix can be used in conjunction with tools like PEST analysis and Five Forces to plan effectively.
- Market penetration involves selling more in existing markets, exemplified by Amazon advancing in e-commerce.
- Market development aims at entering new markets, like Wix's humorously handled situation in Germany.
- Product development strategy focuses on creating new products, as seen in the SaaS industry with enhanced integrations.
- Diversification entails introducing new products in new markets to reduce dependence on existing revenue sources.
- Google's diversified portfolio showcases the benefits of expanding into various areas to lessen reliance on one revenue stream.
- Using the Ansoff Growth Matrix in strategic planning involves analyzing current standing, mapping growth opportunities, and creating implementation plans.
- Implementation plans should include specific goals, timelines, resources allocation, and performance metrics for effective execution.
Read Full Article
2 Likes
For uninterrupted reading, download the app