What is Ansoff's Matrix? Name and explain the 4 aspects.

Ansoff's matrix is a model used when deciding a business' growth strategy. The four aspects are market penetration, market development, product development, and diversification. Each aspect outlines a different product or market growth strategy that a business may choose to take. The market penetration strategy focuses on selling a business' current products into its current markets. It aims to achieve an increased market share of current products and increase loyalty to this product, potentially by driving out competitors. This can be done through introducing new pricing or advertising strategies. This is a relatively low risk strategy. The market development strategy focuses on introducing a business' current products into new markets. This slightly riskier strategy can be achieved by targeting the products towards different markets; such as a higher quality market, or a different geographical market. The productdevelopment strategy introduces new products to a business' current market. This strategy takes research and development to assess the customers' needs in this market, to give them a new product that there will be demand for. The final strategy, diversification, introduces new products into new markets. This is the riskiest strategy, as the business is creating products it has little experience with, and is moving into markets it has small knowledge of.