Ansoff's Strategies for Strategic Growth

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  • Ansoff's Strategies for Strategic Growth
    • Market Penetration
      • Trying to increase your market share in your existing market
        • Sales promotions
        • Pricing strategies
        • Advertising
      • Works best in a growth market, not in saturated markets where demand for the product has stopped growing
    • New Product Development
      • Selling new products in your existing markets
      • Best when the market has good growth potential
      • High market share
      • Strong R&D
      • Good competitive advantage
    • Market Development / Extension
      • Selling existing products in new markets
      • Can be done through repositioning
        • Focusing on a different segment of the market
      • Need to research target market segment and work out how they can adapt their product/promotion to suit its needs
      • Might involve creating a new advertising campaign or promotion targeting new audience
      • Businesses can target different market segments by using new distribution channels
        • E.g. E-commerce
      • Can also be done by expanding into new geographical markets to exploit the same market segment
    • Diversification
      • Selling new products to new markets
      • Very risky strategy
        • Involves moving into markets the business may have no experience of
      • Used when
        • A business needs to reduce their dependence on a limited product range
          • Reduces the risk
        • High profits are likely
          • Reduces the risk

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