Amazon's Use of Ansoff Matrix Strategy Tool


Amazon's Use of Ansoff Matrix Strategy Tool

As Amazon identified potential strategy options, it developed evaluation criteria and rated various alternatives. This tool helps organization identify growth approaches in four keys areas.

1. Protect / Build or “Market Penetration:”

Marketing penetration strategies focus on selling more existing products within existing markets. This approach is least risky. Examples of different focal areas include:

  • advertising programs
  • marketing programs
  • loyalty programs
  • adding sales resources
  • expanding products and services with existing clients
  • pricing

2. Market Development:

Market development strategies focus on selling existing products into new markets. This approach is somewhat more risky than market penetration. Examples of different focal areas include:

  • new area development programs
  • new channels
  • new packaging
  • new pricing

3. Product Development:

These strategies concentrate on developing and introducing new products in existing markets. This is riskier than the marketing penetration and market development approaches. 


4. Diversification:

These strategies concentrate on developing and introducing new products in existing markets. This is riskier than the marketing penetration and market development approaches. 

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Highlights by David Willden