The product/market grid
of Ansoff is a model that has proven to be very useful in business unit strategy
processes to determine business growth opportunities. The product/market grid
has two dimensions: products and markets.
Over these 2
dimensions, four growth strategies can be formed:
based on market penetration normally focus on changing incidental clients
to regular clients, and regular client into heavy clients. Typical systems
are volume discounts, bonus cards and customer relationship management.
based on market development often try to lure clients away from
competitors or introduce existing products in foreign markets or introduce
new brand names in a market.
based on product development often try to sell other products to (regular)
clients. This can be accessories, add-ons, or completely new products.
Often existing communication channels are leveraged.
based on diversification are the most risky type of strategies. Often
there is a credibility focus in the communication to explain why the
company enters new markets with new products. This 4th quadrant
(diversification) of the product/market grid
can be further
split up in four types:
diversification (new product, current market)
diversification (move into firms supplier's or customer's business)
diversification (new product closely related to current product in new
diversification (new product in new market).
decennia old, the product/market grid
of Ansoff remains a valuable model for communication around business
unit strategy processes and business growth.
Blue Ocean Strategy
| Relative Value of
| Porter Competitive
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