As a follow-up to the discussion over the last couple of days about identifying different types of prospects and customers, I’m indebted to the reader who suggested mentioning the Ansoff Matrix, a way of looking at areas for growth which dates back to the 1950s. Similar to the way in which I suggested considering prospects and customers as four separate groups, the Ansoff Matrix divides markets and products.
By considering existing and new products, and existing and new markets, the Ansoff Matrix gives us four strategies for expanding our business. In the first, we grow our market share with existing products in existing markets. In the second, we target existing products to new market segments. In the third, we develop new products for existing markets. And you’ll be able to predict that in the fourth, we develop new products for new markets.
We’ve been discussing these options here at BMON over the past few months, and almost any business can assess their road ahead this way. Even if you’re simply a regional subsidiary with no way of taking on or developing new product lines, you still have a choice between growing your share in existing markets, or moving into new markets.
Here’s a guide for further reading on the Ansoff Matrix from the excellent Free Management eBooks site.