Thought of the Day (98): Take a look at this MATRIX to grow your business

"Whenever you see a successful business, someone once made a courageous decision."

- Peter Drucker

"A corporation is a living organism; it has to continue to shed its skin. Methods have to change. Focus has to change. Values have to change. The sum total of those changes is transformation."

- Andy Grove

Successful organisations make bold decisions, grow with time, and make appropriate changes according to the needs. There are many tools to learn from and growth a business? Here is the Ansoff Matrix that was first published in 1950's, but very much valid even today. Take a look at it.

Combining the 4 dimensions, you get the following:

1) Existing Products in Existing Markets: Look for ways and means you can penetrate the markets and increase your market share.

2) Existing Products in New Markets: Go for market development activities and expand your business into new areas/segments. Aim at getting new customers.

3) New Products in Existing Markets: Develop and promote new products in the existing markets where there is already brand equity and customer loyalty. Also look for ways and means of increasing the exposure of your new products to your existing customers.

4) New Products in New Markets: It means diversification into new markets with new products. It is also a potential tool to build a stable and sustainable business.

To your continued SUCCESS,

With love,

Siva
Original Reference: Ansoff, H. I. (1957). Strategies for Diversification. Harvard Business Review. (Vol. 35 Issue 5, Sep/Oct).  p113-124.
PS: For success thoughts published earlier on this blog, please find them at the link given below:
http://value4value.blogspot.in/search/label/Success%20Thoughts