Course Content
Strategic Management: Introduction
Strategic Management: Concept, Process, Decision and Types
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Strategies :Introduction
Basic Terminology
Terminology
Schools of thought on Strategy formulation
Modes of Strategic Decision Making: Mintzberg
Strategic Planning
Sgtrategic Decision Making : Introduction
External Strategic Analysis
External Analysis, PEST, Porter’s Approach to Industry Analysis
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What is Strategic Analysis
PEST Analysis: Multiple : Johnson and Scholes
Porter’s Approach to Industry Analysis
General Competitive Strategies: Michael Porter
Internal Strategy Analysis
Internal Strategy Analysis – Resource-Based Approach, Value Chain Analysis
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Resource Based Approach
VRIO Framework : J.B. Barney
GAP Analysis
Value Chain Analysis: Michael Porter
Strategy Formulation
Strategy Formulation: SWOT Analysis, Corporate Strategy – Growth, Stability, Retrenchment, Integration, and Diversification
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SWOT Analysis: Albert Humphrey
TOWS Matrix: Heinz Weirich
Corporate-Level Strategies :Introduction
Classification of Corporate-Level Strategies
Directional Corporate Strategies
Turnaround Strategy & Business Process Reengineering
Classification of Integration and Diversification Strategy
Business Portfolio Analysis
Business Portfolio Analysis - BCG, GE Business Model, Ansoff’s Product Market Growth Matrix
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What is a Portfolio Matrix?
BCG Matrix
Ansoff’s Product Market Growth Matrix : Igor Ansoff : 1957
Market Evolution Matrix: C.W. Hoffer and R. Schendel
Strategy Implementation
Strategy Implementation: Challenges of Change, Developing Programs, McKinsey 7s Framework
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Strategic Drift
Mintzberg’s View on Realized Strategy
Parenting Fit Matrix
🔴 Red Ocean Strategy vs 🔵 Blue Ocean Strategy
4-Box Business Model: Mark W. Johnson: 2010
Strategy Diamond: Hambrick and Fredrickson
7-S Approach : 1980 : McKinsey
Unit VI: Strategic Management

The Ansoff Matrix, also known as the Product-Market Growth Matrix, is a strategic tool created by Igor Ansoff in 1957.

It helps companies identify potential growth opportunities by focusing on products and markets.

The matrix presents four different growth strategies based on whether the company wants to focus on existing or new products and whether it wants to target existing or new markets.

🧩 The Four Growth Strategies in the Ansoff Matrix:

The matrix has four strategies based on whether products and markets are new or existing:

  Existing Products New Products
Existing Markets ✅ Market Penetration 🆕 Product Development
New Markets 🆕 Market Development 🚀 Diversification

1. ✅ Market Penetration

Focus: Increase sales of existing products in existing markets.

  • Strategy: Attract more customers, increase usage, gain competitor’s customers.

  • Examples: Discounts, promotions, advertising, loyalty programs.

👉 Risk Level: Low
👉 Example: Coca-Cola increasing sales in India via offers.

2. 🆕 Product Development

Focus: Introduce new products to existing markets.

  • Strategy: Innovate, improve, or launch new versions of products.

  • Examples: Tech upgrades, product line extensions.

👉 Risk Level: Moderate
👉 Example: Apple launching a new iPhone model to its existing user base.

3. 🆕 Market Development

Focus: Sell existing products in new markets.

  • Strategy: Enter new geographical areas or customer segments.

  • Examples: Targeting new age groups, regions, or international markets.

👉 Risk Level: Moderate to High
👉 Example: Starbucks entering India or China.

4. 🚀 Diversification

Focus: New products in new markets.

  • Strategy: Enter completely different industries or customer segments.

  • Types:

    • Related Diversification: Similar industry (e.g., Apple launching smartwatches)

    • Unrelated Diversification: Different industry (e.g., Tata entering software, steel, salt)

👉 Risk Level: High (highest of all)
👉 Example: Amazon moving from online retail to cloud computing (AWS)

  1.  

🎯 Summary of the Ansoff Matrix:

Strategy Products Markets Risk Example
Market Penetration Existing Products Existing Markets Low Risk Coca-Cola increasing market share
Product Development New Products Existing Markets Medium Risk Apple launching new iPhone models
Market Development Existing Products New Markets Medium to High Risk McDonald’s expanding to new countries
Diversification New Products New Markets High Risk Amazon expanding into cloud services

The Ansoff Product-Market Matrix is a strategic tool used by businesses to identify and evaluate growth opportunities. It was developed by Igor Ansoff and is also known as the Ansoff Growth Matrix.

 

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