Ansoff’s matrix

The main purpose of a marketing strategy is to set out the means by which agreed marketing objectives are to be achieved. One way of analysing the various strategies that an organisation may use to grow the business is with Igor Ansoff’s (1965) matrix. This considers the opportunities of offering existing and new products within existing and/or new markets and the levels of risk associated with each.

Enterprise Rent-A-Car has focused most of its growth strategies on market development, product development and diversification. Product development strategies have helped Enterprise to develop services in a market where it was already an established and profitable business.

Factors in the external environment affect decisions about developing new products or services. For example, Morrisons, the UK’s fourth largest supermarket, has announced that it will begin selling food online by the end 2013. It is the last of the ‘big four’ supermarkets to establish an online retail presence. (BBC, 14th March 2013)

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