Ansoff's Matrix

Description
Ansoff's matrix is generally performed after a SWOT analysis, where businesses assess their strengths, weaknesses, opportunities, and threats. These are then turned into business strategies:

1) Market Penetration: this is where the organization takes existing products in existing markets by improving their tactics to push sales. For example, they can use advertising, promotion and pricing.

2) Product Development: this is where the organization develops new products within an existing market or to add new features.

3) Market Development: the organization decides to sell existing products to new markets. they can do this by exporting to new countries, for example.

4) Diversification: this is where the organization decides to take a more radical approach by creating a new product and introducing it to a new market.

Once the strategy has been defined using Ansoff’s matrix, the objectives, strategies, and tactics can be revised in the VMOST model. The information needed for this matrix can usually be found in previous internal analysis, external analysis, and SWOT analysis.