Growth strategy matrix/Ansoff's Matrix

Ansoff’s matrix identifies alternative growth strategies by looking at present and potential products in current and future markets. The four growth strategies are market penetration, market development, product development and diversification

# Market Penetration - Market Penetration is growth strategy in which an organization try to increase their market share by selling more with  existing product into a market in which it has a prior presence.

For Example-Tooth paste maker such as Colgate and HUL try to capture more market share of already existing market with existing product such as in India . It may include aggressive advertisement , offers ,etc to penetrate more into existing market

# Product Development - Product Development is growth strategy  that is used by marketer in order to increase their market share by introducing new product into existing market . According to this strategy an organization try to stimulate its growth by adding new product into its portfolio  into existing market where they are already doing business . This strategy is very common in highly competitive market .

For Example - Colgate and Pamolive introduce Colgate Salt as their new product  in highly competitive market of tooth paste . By introducing new product Colgate wants to get more market share.

# Market Development - When market is saturated into existing market , in order to keep pace of growth ,an organization adopted Market development strategy to grow itself. According to this strategy an organization try to enter into new market with existing product portfolio in order to grow itself.

For Example -Pizza Hut and McD is opening their outlets in India and thus adopted strategy of Market development to grow themselves. They are entering into market with existing product .

#Diversification-   The strategies of diversification can include internal development of new products or markets, acquisition of a firm, alliance and joint venture with a complementary company, licensing  of new technologies, and distributing or importing a product line manufactured by another firm .

For Example - When any company try to make joint venture with totally new company of different product then they adopt diversification strategy . This strategy is very popular among large organization to diversify their risk and grow itself with totally new product into new market. Bharti is one of the conglomerate of telecome Industry , but it Joint Venture with AXA of French Insurance company  to from joint venture Bharti AXA in India. So Bharti included insurance product into its portfolio to diversify itself.