To create a growth, finding the
best opportunity is needed. Ansoff’s growth opportunity matrix is one of the
strategies that can be used in product development. A marketing strategy, as
seen, is important in creating a business value. Growth-Opportunity Matrix,
according to businesscasestudies.co.uk, considers the offering existing and new
products within existing and/ or new markets and the levels of risk associated
with each. The matrix can be pictured as follows:
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This matrix suggests four
alternatives of marketing strategies:
- Market Penetration: involves
selling added value products in the market, by the strategies of promotion or
price reduction.
- Product development: involves developing
new products and services and placing them into existing markets
- Market development: selling the
existing products in the new market
- Diversifications: this is
considered to be a risky strategy as in here; companies are taking risks in
expanding towards another field of products and services, targeting new
audience. The costs of new product developments can be high.
The main aim of any companies is
mostly towards market growth. There are many ways of reaching that aim, and
Growth-Opportunity Matrix is one of the Marketing strategies that can be
adopted. The combination of new also existing products and markets are covered
in this matrix, and thus can help in better decision making on product
development itself.
For more details on Product Development, please contact:
KIRTI PARKASH
+62 21 8378 3288
kirti.parkash@frontlinerinc.com
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