What is Product Market Expansion Grid with examples?

What is Product Market Expansion Grid with examples?

The Product Market Expansion Grid, also called the Ansoff Matrix, is a tool used to develop business growth strategies by examining the relationship between new and existing products, new and existing markets, and the risk associated with each possible relationship.

What are examples of an expanding market?

Selling a product to a new market to serve a different customer need. For example, selling packages of baking soda as an air freshener for a refrigerator.

Where and why is Ansoff Matrix best used?

Igor Ansoff developed the Ansoff Matrix in 1957. It offers you a simple and useful way to think about growth. The Matrix outlines four possible avenues for growth, which vary in risk: Market penetration.

What is retrenchment strategy example?

A great example is how P&G the world’s largest consumer products maker focused to improve revenue and profit. Using the Retrenchment strategy P&G dropped almost 100 of its product categories and focused on the key product to maximize long-term value and create exciting opportunities within the businesses.

What is an example of diversification?

For example, an auto company may diversify by adding a new car model or by expanding into a related market like trucks. If a company is expanding into industries that are unrelated to its current business, then it’s engaging in conglomerate diversification.

What is a product expansion strategy?

Product expansion is when companies grow their businesses by adopting a market expansion strategy. This is when a company will attempt to reach out to other markets after capturing the interest of their target market. This matrix is designed to help with plans for growth through new or existing products and/or markets.

What are the four product / market expansion grid strategies?

The four product/market expansion grid strategies are market penetration, market development, product development and diversification. Market penetration is a growth strategy that increase sales to the existing market without changing the existing product.

Which is the best strategy for market expansion?

Thus, there are many tactics and 4 different strategies for market expansion. In today’s world, the most commonly used strategy is Market penetration, because the market is slowly becoming a crowded place with products being introduced daily in existing segments.

Which is an example of a product development strategy?

In a product development strategy, the firm develops a new product to cater to the existing market. The move typically involves extensive research and development and expansion of the company’s product range.

Which is an example of a product diversification strategy?

Product Development: Focuses on introducing new products to an existing market. Market Development: This strategy focuses on entering a new market using existing products. Product Diversification Product diversification is a strategy employed by a company to increase profitability and achieve higher sales volume from new products.