“You are surrounded by simple, obvious solutions that can dramatically increase your income, power, influence and success. The problem is, you just don’t see them.”
~ Jay Abraham
The Ansoff Matrix, also called the Product/Market Expansion Grid, details the four most common ways you can grow your business. These four methods are selling:
- Your existing products to existing customers
- New products to existing customers
- Your existing products to new markets
- New products to new markets
Graphically, you can see the Ansoff Matrix as follows:
The key to the Ansoff Matrix is to understand that certain opportunities have higher risks of failure.
Specifically, selling your existing products to existing customers (“market penetration” – existing products, existing markets) is the least risky, since you have already proven that you can do it. Opportunities here are generally to try new marketing channels that let you reach more customers like your existing customers.
“Product development” is the next least risky, followed by “market development” and finally, the most risky is “diversification”
Is Your Business at Risk of Failure?
Most businesses fail — they die a premature death. I hate to be so blunt, but this is the truth. The only thing that varies is just how many businesses fail.
What’s the number one cause of this failure?
Well, according to Dun & Bradstreet, the primary cause is lack of strategic planning.
Entrepreneurs and business owners don’t plan to fail. Rather, they fail to plan (which causes them to fail).
Today’s Question: Entrepreneur and inventor Henry Ford pioneered what method of mass production in 1913?
Previous Question: Which of the following flavors has never been produced by Campbell’s Soup: Pork Noodle, Watercress, Turtle, or Duck Gizzard?
Answer: Pork Noodle
Campbell’s creates a variety of soup flavors to target niche cultural markets around the world, but Pork Noodle has never made an appearance.
Watercress soup is popular across Europe, though you won’t find it on many shelves in the US. The company’s Duck Gizzard and Turtle soup flavors are both popular in Asian markets.
This is a great example of how a company can increase its customer base by paying attention to what is popular with specific cultures.
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