a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth.
1. Draw the matrix as shown on the front.
2. Where does your business belong?
I. Market development
Focus is on new market, sell the same product to more users, focus on different locations, use different sales channels or focus on different user groups than before.
II. Diversification (high risk)
There is a slim chance to use existing expertise, sell different product to new customer segment.
Advantage: other businesses aren’t affected by each other.
III. Market penetration
Sell more products to the same customer group.
Tools: advertisement, introduce a loyalty scheme, launch price or special offer, buy competitor’s business.
IV. Product development
Selling more different products to same target group.
Tools: build variations of product, new packaging design, develop related products, shorten your time to market, improve customer service.
Have a product in the market.
Build a base for your growth strategy.
Know your product and customers.
Shows four possibilities of how a business can grow and helps to think about risks.
Rethink your price, position and strategy.