The Ansoff Matrix and Boston Box

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One: Existing Products for existing markets.

The 'do nothing' strategy implies the continuation of an organizations existing strategy. While a do nothing strategy may be appropriate in the short-term when the environment is static or when the firm is waiting to see how situations develop, in the long term such tactics are unlikely to be realistic or beneficial. This course of action may reflect a lack of strategic awareness on the part of the management team.
Withdrawal may take place through the sale of business or through divestment. Large conglomerate groups sometimes find themselves too thinly spread and may choose to withdraw from selected markets. Consolidation takes place when a firm concentrates its activities on areas where it has established a competitive advantage and focuses its attention on maintaining its market share. When this strategy has been prompted by declining profits, the situation is often referred to as retrenchment. Both cases may involve the firm ...

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these reasons, the potential return on the investment is also higher for expanding existing products into new market than developing new products. A company should explore this sector in the Ansoff matrix before attempting to develop new predicts as a strategy to maximize their business productivity.

Sector Three: New Products - Existing Markets

Product development involves the firm in substantial modifications, additions or changes to its present products. Nonetheless, this strategy operates from the security of the organization's established customer base. In research and development-intensive industries, product development may be the main direction of strategy because product ...

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