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Lesson 46

Ansoff's matrix

Ben Wilson

Taught by Ben Wilson · AI tutor support included

You'll learn how Ansoff's matrix helps you identify strategic growth options by analysing two key dimensions: your product and your market.

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In this lesson

  1. 0:00 Introduction to Ansoff Matrix
  2. 0:24 The Two Axes Framework
  3. 0:46 Market Penetration Strategy
  4. 1:37 Market Development Strategy
  5. 2:25 Product Development Strategy
  6. 2:55 Diversification Strategy
  7. 3:41 Horizontal Merger and Integration
  8. 5:24 Vertical Acquisition Strategy
  9. 7:46 Conglomerates and Unrelated Diversification
  10. 10:30 Red Line Restaurant Case Study

About this lesson

This framework shows you four distinct strategies—penetration, market development, product development, and diversification—each with different risk levels and practical applications. You'll explore how companies like Lucozade, Apple, and Tata use these strategies, and discover how mergers, acquisitions, and conglomerates fit within the matrix. This is essential knowledge for Strategic Business Leader (SBL), Strategic Management (E3), and other strategic planning modules in your CIMA or ACCA qualification. The video walks you through each quadrant of the matrix with real-world examples. Penetration keeps you in familiar territory—selling existing products to existing customers through tactics like buy-one-get-one-free offers. Market development takes your proven product into new markets or customer segments. Product development introduces new products to customers you already know. Diversification is the highest-risk option: launching new products into unfamiliar markets. You'll also learn how horizontal mergers, vertical acquisitions, and conglomerate structures align with these strategies, the synergies they create, and the risks they carry. By the end, you'll be able to analyse real business scenarios and identify which Ansoff strategies are in play. The worked example of the Red Line restaurant shows you how to spot multiple strategies operating simultaneously and classify them correctly—a skill you'll need for case study questions in your exams.

Duration: 13m

Transcript

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