First published on: https://www.rsm.global/kenya/insights/consulting-insights/which-growth-strategy-adopt
Ansoff Growth Matrix is a strategic tool that forms a basis for many companies when considering growth strategies.
BY PALAK TEWARY
The model is based on two axes: products and markets and suggests four growth strategies, namely:
- Market penetration
- Market development
- Product development
- Diversification
Market penetration
Market penetration is a strategy that aims to increase market share by increased sale of prevailing products or services in the present markets. Approaches adopted for this strategy include:
- Reduction in price to increase sales from current customers or obtain new customers
- Promotional activities to attract customers
- Increased distribution channels
- Acquirement of another company within the present market
Palak Tewary 