In other words, the firm has to ensure that it leverages the current capabilities, resources, and gears towards a growth-oriented strategy.
This is a minimal risk strategy as all that a firm has to do is to increase its marketing efforts and improve on its market share. Market PenetrationĪs can be seen from the figure above, market penetration happens when the existing products are marketed in a way to increase the market share of the firm.
The four quadrants (which are described in detail subsequently) pertain to increasing market share through market penetration, venturing into new markets with the existing products or market development, and launching new products in existing markets with product development, and finally, diversification when firms seek to enter new markets with new products. This roadmap has been presented in the form of a Matrix that has four quadrants with the axes of products and markets being the determinants of the strategies.Īs can be seen from the figure accompanying this section, the combinations of the two axes provide the firms with options that they can pursue in search of market share. The famous management expert, Igor Ansoff provided a roadmap for firms to grow depending on whether they are launching new products or entering new markets or a combination of these options.
0 kommentar(er)
