Purpose
Ansoff’s matrix is strategic planning tool that provides a framework to help the executives, analysts, senior managers, and marketers to devise the strategies for future growth.
The concept of Ansoff’s matrix was developed by Igor Ansoff in 1957, an applied mathematician and a business manager. It is a useful tool for organizations wanting to identify and explore their growth in the market. The Ansoff’s matrix is also called as the product or the market expansion grim, used by the firms to analyze and plan the strategies for growth of the organization. It helped many marketers and leaders to clearly understand the risk of growing their business. Ansoff’s matrix suggests that the business attempts to grow depend on whether it markets the new or existing products in a new or existing markets. The output from the Ansoff’s matrix is a series of suggested growth strategies which set the direction for the business strategy.
The Ansoff’s matrix is essential for strategic marketing planning where it can be applied to look at the opportunities to grow the revenue for the business through developing new products and services or tapping into new market. It is also called as a product-market matrix. Ansoff’s matrix is one of the most widely used marketing models. It is used to evaluate the opportunities for companies to increase their sales through showing alternative combinations for new markets. By using the Ansoff’s matrix, the business gets an idea of how the success of the organization relies on its existing, and potential market and products. The product and market are the two dimensions of the Ansoff’s matrix. It is used in the marketing plan process. The Ansoff’s matrix is used to identify which strategy the business should use and then informs which tactics should be used in the marketing activity.
Some of the articles related to Ansoff’s matrix techniques are as follows,