What are the steps to use the Ansoff matrix for market growth?

2 Plot the Ansoff matrix

The second step is to plot the Ansoff matrix, which is a 2x2 grid that shows the relationship between markets and products. The horizontal axis represents the markets, from existing to new, and the vertical axis represents the products, from existing to new. The four quadrants of the grid are the four growth strategies: market penetration, product development, market development, and diversification. Market penetration means selling more of your existing products to your existing markets. Product development means creating new or improved products for your existing markets. Market development means entering new markets with your existing products. Diversification means launching new products in new markets.

3 Evaluate the growth strategies

The third step is to evaluate the growth strategies based on their feasibility, attractiveness, and risk. Feasibility refers to how easy or difficult it is to implement the strategy, considering your resources, capabilities, and competition. Attractiveness refers to how profitable or rewarding the strategy is, considering your goals, objectives, and market potential. Risk refers to how uncertain or risky the strategy is, considering your assumptions, challenges, and threats. You can use various tools and methods to assess these factors, such as SWOT analysis, PEST analysis, Porter's five forces, or BCG matrix. The aim is to have a balanced and realistic view of the pros and cons of each strategy.

4 Choose the best growth strategy

The fourth step is to choose the best growth strategy based on your evaluation. You can use various criteria to make your decision, such as return on investment, market share, customer satisfaction, or competitive advantage. You can also use a scoring system to rank the strategies according to their feasibility, attractiveness, and risk. The goal is to select the strategy that aligns with your vision, mission, and values, and that offers the most value and growth for your business.

5 Implement and monitor the growth strategy

The fifth step is to implement and monitor the growth strategy. You need to develop a detailed action plan that outlines the steps, tasks, responsibilities, timelines, and budgets for executing the strategy. You also need to establish key performance indicators (KPIs) that measure the results and outcomes of the strategy. You need to track and analyze the data and feedback from your customers, competitors, and stakeholders. You need to review and adjust the strategy as needed, based on the changing market conditions and customer expectations. The goal is to ensure that the strategy is effective and efficient, and that it achieves the desired market growth.