Ansoff Growth Matrix Components

1. Market Penetration:
   This strategy focuses on increasing sales of existing products to the current market. The goal is to gain a larger market share within existing markets, which can involve increasing brand loyalty, encouraging customers to buy more frequently, or attracting competitors’ customers.
2. Market Development:
   Market development involves taking existing products into new markets. This could mean expanding geographically into new regions or targeting different customer segments that have not been previously served by the company.
3. Product Development:
   Product development is about introducing new products to existing markets. Companies may innovate and develop new products to meet the needs of their current customer base, which can also involve product improvements or extensions of existing product lines.
4. Diversification:
   Diversification is the most risky strategy, involving the introduction of new products to new markets. This can be related diversification, where the new products are somewhat related to the existing product line, or unrelated diversification, where the new products have no relation to the existing products or markets.

(4 components well explained @ 2.5 marks each = 10 marks)