What is the product market expansion grid?

Answer 1

Ansoff's Product-Market Expansion Grid Ian Ansoff has proposed a useful framework called the product/market expansion grid for detecting new intensive growth opportunities. There are four strategies, one for each of the quadrants: Market Penetration Strategy

When the product is in the current market, it can still grow. There are three major approaches to increasing current product's market share:

1. Encourage current customers to buy more.

2. Attract competitor's customers.

3. Convince non-users to use the product. Market-Development Strategy

When the current product is launched in a new market, there are three approaches to develop the market:

1. Expand distribution channels.

2. Sell in new locations.

3. Identify the potential users. Product-Development Strategy

When a new product is launched in the current market, the intensive growth strategies could be to:

1. Develop new features.

2. Develop different quality levels.

3. Improve the technology. Diversification

When a new product is launched in a new market, diversification makes good sense as better opportunities are found outside the present business. The diversification strategies are of three types:

1. Concentric Diversification Strategy: Develop new products with the earlier technology for new segments

2. Conglomerate Diversification Strategy: Develop new products for new markets.

3. Horizontal Diversification Strategy: Develop new products with new technology for old customers. OLD PRODUCTS NEW PRODUCTS OLD MARKETS Market Penetration Product Development NEW MARKETS Market Development Diversification