Developing Strategies for Growth and Downsizing

Product/Market expansion grid

A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification


...........Existing Product....... New Product

Market Penetration	Product Development
Market Development	Diversification

Existing Market

New Market

 
Market Penetration

A strategy for company growth by increasing sales of current products to current market segments without changing the product.

Market Development

Strategy for company growth by identifying and developing new market segments for current company products.

Product Development

A strategy for company growth by offering modified or new products to current market segments

Diversification

A strategy for company growth through starting up or acquiring businesses outside the
company’s current products and markets