Ansoffs and Boston Matrix
Starters plenaries and pupil work
sheet
Ansoffs Matrix
Marketing Strategies for Growth within a business
Firm seeks to achieve growth
with existing products in
their current market
segments aiming to increase
it’s market share
Firm seeks growth by
targeting it’s existing
products to new market
segments
Firm develops new products
targeted to it’s existing
market segments
Firm grows by diversifying
into new businesses by
developing new products for
new markets
Existing Markets
Existing products
New markets
Existing products
Existing Markets
New Products
New Markets
New Products
Product development
Diversification
Market Penetration
Market Development
Ansoffs Matrix
Strategies for Growth within a business
Firm seeks to achieve growth
with existing products in
their current market
segments aiming to increase
it’s market share. 3
Market Penetration
Firm develops new products
targeted to it’s existing
market segments. 1
Product Development
Existing Markets
Existing products 3
Market
Penetration
Existing Markets
New Products
Product
Development
Firm seeks growth by
targeting it’s existing
products to new market
segments. 4 Market
Development
Firm grows by diversifying
into new businesses by
developing new products for
new markets. 2
Diversification
New markets
Existing products
Market
Development
New Markets
New Products 2
Diversification
1. Product
development
2. Diversification
3. Market Penetration
4. Market
Development
Ansoffs Matrix
Strategies for Growth within a business
Firm seeks to achieve growth
with existing products in
their current market
segments aiming to increase
it’s market share.
Firm develops new products
targeted to it’s existing
market segments.
Existing Markets
Existing products
Firm seeks growth by
targeting it’s existing
products to new market
segments.
Firm grows by diversifying
into new businesses by
developing new products for
new markets.
New markets
Existing products
Market
Development
Market
Development
Diversification
Diversification
Market
Penetration
Market Penetration
Product Development
Product Development
Existing Markets
New Products
New Markets
New Products
• http://www.quickmba.com/strategy/matrix/a
nsoff/
• http://www.dailymail.co.uk/money/article1308144/Tesco-bids-Carrefours-Asianstores.html
Ansoffs Matrix
Existing
Markets
New
Markets
Existing
Products
Market
Penetration
Market
Development
New Products
Product
development
Diversification
Tesco Growth Strategies
Existing
Markets
New
Markets
Existing
Products
New Products
Market
Penetration
Product development
Market
Development
Diversification
Tesco bids for Carrefour's
Asian stores in hope to
become grocery market
leader in SINGAPORE
Tesco Growth Strategies
Existing
Markets
New
Markets
Existing
Products
New Products
Market
Penetration
Product development
Market
Development
Diversification
Tesco bids for Carrefour's
Asian stores in hope to
become grocery market
leader in SINGAPORE
Boston Matrix
Product Portfolio Analysis
Excellent products with
high growth and high
market share; but need
constant advertising.
Big investment to
develop and advertise
to start with but it has
big sales potential for
the future.
Dog
Rising Star
Profits from Cash Cows
help fund new products.
Sales made with little
investment.
Sales are falling and it
may be taking profit to
keep the dog alive.
Low market growth %
High market growth %
Low market share %
High market share %
Problem Child
Cash Cow
Boston Matrix
Product Portfolio Analysis
Excellent products with
high growth and high
market share; but need
constant advertising.
Big investment to
develop and advertise
to start with but it has
big sales potential for
the future.
Profits from Cash Cows
help fund new products.
Sales made with little
investment.
Sales are falling and it
may be taking profit to
keep the dog alive.
Low market growth %
High market growth %
Dog
Rising Star
Problem Child
Cash Cow
Dog
Rising Star
Problem Child
Cash Cow
Dog
Rising Star
Problem Child
Low market share %
High market share %
Cash Cow
Boston Matrix
Product Portfolio Analysis
Excellent products with
high growth and high
market share; but need
constant advertising.
Rising Star
Profits from Cash Cows
help fund new products.
Sales made with little
investment.
Cash Cow
Big investment to
develop and advertise
to start with but it has
big sales potential for
the future.
Problem Child
Sales are falling and it
may be taking profit to
keep the dog alive.
Dog
Dog
Low market growth %
High market growth %
Cash cow
Rising Star Problem
Child
Dog
Low market share %
Problem
Child
Dog
High market share %
Rising Star Cash Cow
Tesco
Product Portfolio Analysis
High Market Share Low Market Share
High
Market
growth
Low
Market
Growth
Tesco Film
Club
Rising Star
Problem Child
Cash Cow
Dog
Tesco
Product Portfolio Analysis
High Market Share Low Market Share
High
Market
growth
Low
Market
Growth
Rising Star
Problem Child
Cash Cow
Dog
Tesco Film
Club
Tesco Growth Strategies
Existing
Products
New Products
Existing
Markets
Market
Penetration
Product development
New
Markets
Market
Development
Diversification
Tesco
Product Portfolio Analysis
High Market Share Low Market Share
High
Market
growth
Rising Star
Problem Child
Low
Market
Growth
Cash Cow
Dog
Writing Up The Evaluation
Look at your Ansoffs Grid
For each product say:• What technique should be used according to Ansoff.
• What technique is been used by Tesco
• Is this the same, why
• If not what is been used and why
• Is the current technique been used successful. How do you
know this (evidence(research))
• If so why
• If not recommend which technique they should use and
justify why this technique is better (Use Ansoff and Boston)
Assessment of Your Work
• Get 5 highlighters
• Circle where the name of the product is
Have you explained
• What technique should be used according to Ansoff. (Pink)
• What technique is been used by Tesco (Green)
• Is this the same, why (Yellow)
• If not what is been used and why (Yellow)
• Is the current technique been used successful. How do you know
this (evidence(research)) (Blue)
• If so why (Blue)
• If not recommend which technique they should use and justify why
this technique is better (Use Ansoff and Boston (Orange)
Does not have to be in this order so long as it is in the evaluation and
makes sense