Pursuing a growth strategy
A DSG international case study

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Page 2: Ansoff´s Product-Market Matrix

In a frequently quoted article in the Harvard Business Review, titled Corporate Strategy(1957) Igor Ansoff outlined a number of growth strategies. This was based on detailed research examining typical business growth case examples.

He set out the main options in the form of a matrix:

  • Market penetration means selling more of existing products to existing markets, in order to increase market share.
  • Product development means growing through existing customer segments by offering new products to them.
  • Market development refers to selling existing products to new customer segments.
  • Diversification involves developing new products for new markets.

At Dixons, product development often results from working with manufacturers to bring customers new types of goods, like exclusive models, or services like specialist 'mini-stores' within the main outlet.

In this case study we examine two recent growth strategies employed by Dixons, i.e. market penetration through the development of the Dixons xL concept, and market development through Electro World.

DSG international | Pursuing a growth strategy