In 1957 H. Igor Ansoff devised a matrix to address four ways to grow a market share. There are four quadrants, each with product/market combinations for growth with varying risk profiles.
There are detailed explanations of the Ansoff Matrix online but in overview the four quadrants are best explained like this:
- The first quadrant is market penetration where you expand your market share with your current line-up of products. This is the least risky of the four strategies because you’re already familiar with your market and your products.
- The second quadrant is market development where you take your existing products to new markets.
- The third quadrant is product development where you develop new products for your existing market.
- The fourth quadrant is about diversification where you introduce new products into new markets. This is of course the riskiest option because you have to develop both new products and new markets simultaneously.
The Ansoff Matrix has stood the test of time, which is enough reason to justify you exploring it in more detail if you’re looking to grow your market share.