The Ansoff Growth Matrix is a tool which is used in generating corporate-level growth strategies for an organization. The use of the matrix results in four possible grand growth strategies available to an organization.

Required:

Identify and explain these FOUR (4) grand growth strategies.

The Four Grand Growth Strategies Based on the Ansoff Growth Matrix:

  1. Market Penetration (Existing Markets and Existing Products):
    This strategy involves increasing market share within existing markets using existing products. It can be achieved by attracting customers from competitors, or by convincing current customers to use more of the product. The primary focus is on growing the market share by intensifying marketing efforts.
  2. Product Development (Existing Markets and New Products):
    Product development strategy involves introducing new products to existing markets. This requires innovation and investment in research and development. The objective is to cater to the existing customer base by offering them new products, thereby deepening the relationship with current customers.
  3. Market Development (New Markets and Existing Products):
    This strategy focuses on expanding into new markets with existing products. This could include entering new geographical areas, targeting different customer segments, or finding new uses for the product. The goal is to reach new customers by expanding the reach of current products.
  4. Diversification (New Markets and New Products):
    Diversification involves entering new markets with new products. It can be categorized into related (concentric) diversification and unrelated (conglomerate) diversification. This strategy is the most risky as it involves venturing into new areas of operation that may be unfamiliar to the organization, but it also offers the potential for high rewards.