You’re probably aware that you should manage a new product differently than an existing product. But do you know why you should choose to build a new product versus enhance an existing one? It comes down to how you want to grow your organization. Here are some resources that explain how a friendly 2×2 matrix helps you determine whether a new product or existing product is your best bet.
The Ansoff Model. The Ansoff Model helps you identify opportunities to grow revenue for your business through developing new products and services or “tapping into” new markets. Annmarie Hanlon introduces the Ansoff Model and explains how you can use it to determine what type of growth strategy you should use. That includes deciding whether to use existing products to get into new markets (market development) or develop a new product for an existing market (product development).
Market development vs product development – what you don’t know. Igor Ansoff created the 2×2 Ansoff Model to the four different strategies you can use to attain maximum growth for your business. The folks at IncomeHolic describe how you can use the Ansoff Matrix to pick between product development and market development in order to get the most benefit for your business.
Business growth strategy: market penetration & market development. If your organization is to grow in the long term, you need to find new ways to increase profits and reach more customers. The folks at IHDigital suggest that your best bet is to use Ansoff Matrix – a strategic tool to quickly devise potential growth strategies and weigh up the potential risks. The matrix shows when you should develop a new product and when you should leverage an existing product.
Successful growth strategy examples from real-world companies. Growing your business is fundamental to its survival. But that growth doesn’t happen by accident. You need to have a growth strategy in order to achieve your growth goals. Robert Izquierdo describes the four growth strategies summarized by the Ansoff Matrix and provides examples of each strategy.
Market Cannibalization. One thing you need to consider when introducing a new product is the impact it will have on the sales of your existing product(s). Will Keaton describes the concept of market cannibalization – the loss in sales caused by a company’s introduction of a new product that displaces one of its own older products.