The Ansoff Growth matrix is a tool that
helps businesses decide their product
and market growth strategy
 Ansoff’s product/market growth matrix
suggests that a business’ attempts to
grow depend on whether it markets new
or existing products in new or existing
markets.
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Market Penetration: Here we market our existing
products to our existing customers. This means
increasing our revenue by, for example, promoting
the product, repositioning the brand, and so on.
However, the product is not altered and we do not
seek any new customers.

This is usually used for increasing the market share
of a company.For example if Pepsi can market
their product better than Coca-Cola they will
make a better profit than Coca-Cola and they will
increase their market share.
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Market Development Here we market our existing
product range in a new market. This means that
the product remains the same, but it is marketed to
a new audience. Exporting the product, or
marketing it in a new region, are examples of
market development.
This strategy can be exampled like this if ColaTurca a Turkish company who decides to expend
their product to a new region such as England so
they start to sell their cola in there
This is a weak strategy if there is so many rival
companies at the place such as Pepsi and Cola in
England
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Product Development This is a new product to be marketed
to our existing customers. Here we develop and innovate
new product offerings to replace existing ones. Such
products are then marketed to our existing customers. This
often happens with the auto markets where existing models
are updated or replaced and then marketed to existing
customers.
This one in Coke companies came up with pepsi with Pepsi
Blue and Pepsi Twist
This development
increased pepsi’s
Profit by %15
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Diversification This is where we market completely new
products to new customers. There are two types of
diversification, namely related and unrelated diversification.
Related diversification means that we remain in a market or
industry with which we are familiar. For example, a soup
manufacturer diversifies into cake manufacture (i.e. the food
industry). Unrelated diversification is where we have no
previous industry nor market experience. For example a soup
manufacturer invests in the rail business.
If Coca-Cola starts to manage Parties
what strategies did they use? Would it be
profitable for them?
 If adidas starts a Television company in
North africa what strategies
did they use?
Which of the ansoff strategies are
profitable in our day?
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Michael Porter is a professor in the
Harvard Business School and also the
president of the Institute for Strategy and
Competitiveness. His simple diagram of
competitive strategy became very
popular in the 1980s, and it is even more
popular in today’s competitive world.

McDonald’s and Wal-Mart use the same
strategy which is the Cost Leadership in
the Porter’s Generic Strategies Diagram.
They are the lowest cost suppliers of a
certain product in the market that they
are competing in. Because they use
strategy, they are the market leaders
and they are very profitable.

Altough these companies’ products
does not have a lower cost compared
to other companies, they use another
strategy from the Porter’s Diagram,
which is Differentiation. Branding is what
makes people to recognize the products
of these companies. The hand writing of
Coca Cola and the swoosh of Nike are
two of the brilliantly chosen logos.

These companies use the Differentiation
Focus strategy. They offer quality
products for premium cost, but they
have a narrower target of customers
compared to other car firms.

Ikea uses the Cost Focus in Porter’s
Diagram. They combine good quality
and good function with low prices.