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Growth Strategies – Ansoff’s Matrix

The core role of my growth programme is to help small businesses identify how they can grow, and what strategies they need to maximise opportunity.

There are a few different ways that we do this; we look at how they can increase their turnover, we look at how they can reduce their outgoings, and we look at how they can manage risk.

Throughout this process there are lots of different models, tools and templates we use to generate, assess and select options, and one of those is Ansoff’s Matrix.

This matrix is a really useful tool for opening a discussion into how the business might grow, and it allows, through that discussion, for ideas generation, scenario planning and assessment of options.

Ansoff’s Matrix has 4 distinct area for growth, all with different levels of risk, see diagram.

The lowest risk option is Market Penetration.

This is where you focus on the product or services you currently sell, in the market you’re currently selling in, and you explore strategies to increase your market share.

Medium risk options are Market or Product Development.

Market Development is where you stick with your current product or service, but you explore expanding into a new market.

This could be a different geographical area of the country, it could be a totally new country, it could be the same geographical area but focusing on a different type of customer.

Product Development is where you stick with your existing client base, but you would develop your product offering. This could be through the introduction of brand new products, portfolio expansion, or through the development of your existing product with different options, levels or add on’s.

The highest risk option is Diversification. This is where you launch a new product into a new market.

As part of my business growth programme we use this matrix to explore options in each of these areas. We discuss how we might implement each strategy, we select the strategy or combination of strategies that are likely to work best for us, and get us closest to our vision, and then take those strategies into subsequent sessions to plan.

I’ve put together a document that shows the 4 different elements of Ansoff’s Matrix and the risk levels involved, it provides guidance questions you can use to generate ideas for each, and to initiate discussion, and a template to record your thoughts and ideas.

Try it out with your team, or even on your own, and see how many ideas you can generate that you can then explore for merit.

You’ll be smashing last year’s figures before you know it!

Get Your Free Copy Here

Once you’ve used the template, book in for a free 30-minute consultation where I can help you with the next stage, which is selecting the right option and implementing it.

Book Your Free 30 Minute Consultation Here

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