Application of Ansoff Matrix to Zara - Essay ExampleThe present research has identified that Ansoff Matrix is one of the tools which have been used by management for the purpose of strategic planning. Ansoff model was introduced in 1957 by H Igor Ansoff. Ansoff model helps managers to understand the barriers and opportunities in existing and new markets with existing and new products. According to Ansoff model, an organization has four strategies with two based on markets and products or services. According to this matrix, when an organization moves to next quadrant vertically or horizontally, risk increases. The image attached to the appendices section shows the Ansoff model. Ansoff matrix is commonly known as product and market expansion grid and this matrix helps managers to make decisions whether they should expand their business or penetrate in the existing market. Ansoff Matrix shows that management has four strategies and these are; 1. Market penetration 2. Market development 3. Product development 4. Diversification.
