What is the Ansoff Matrix

The Ansoff Matrix is corporate growth strategy model. It is composed of a grid with four sections. Market penetration, Product development, Market development and Diversification.Market Penetration is when a company expands organically (builds) or inorganically (buys). This is usually the ‘safest’ option.Product Development is when the company develops new product lines or services or improves existing ones.Market Development is expansion by targeting new markets, this can be within the same country or in other countries.Diversification involves targeting a new market which the business is not already in, whilst creating a new product or service for that new market. This strategy carries the most risk. An example of a company that has done this very successfully would be Virgin.

ES
Answered by Emma S. Business Studies tutor

5485 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

Assess the consequences to a business, such as Spirit Airlines, of only selling its tickets online.


Suggest 3 reasons why a rise in annual sales might not result in a rise in net profit


Evaluate the usefulness of published accounting information to stakeholder groups of Tesco (usually it would be 2 advantage and 2 disadvantage)


What is Maslow's hierarchy of needs? will it be in the exam?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences