Ansoff and BCG are two of the best-known strategic frameworks for business growth.
The Ansoff Matrix was developed by Igor Ansoff, a Russian mathematician who in 1957, showed a matrix with four potential strategies for businesses to increase their revenues: Market Penetration, Market Development, Product Development and Diversification. The idea is that companies can use different strategies to increase their income and market share.
The BCG Matrix, on the other hand, is a strategy matrix developed by Bruce Henderson in 1970 for The Boston Consulting Group. It looks at four generic business unit types – Cash Cows, Stars, Dogs and Question Marks - each representing a product or brand type. Companies can understand the relative attractiveness of each type of product or brand and focus their resources on those with the highest potential return.
Both frameworks are widely used in business to think strategically about increasing revenues and remaining competitive in the market. By understanding these two strategic matrices, companies can use them to develop strategies that will help drive new revenue and growth.
Understanding both frameworks and how they can be used together is essential. For example, Ansoff's matrix can determine which strategy has the most growth potential, while BCG can inform the relative attractiveness of each type of product or brand. This combination allows companies to develop a comprehensive strategy that will help them achieve their desired business goals.
With these two frameworks in mind, companies can use them to drive growth and remain competitive. By understanding how they work together, businesses can develop more effective strategies that will help them increase their revenues and become more successful.