The product/market matrix is an accepted method of categorizing and identifying market and product developments and opportunities. The matrix basically identifies the various strategies that are available to organizations and divides them into four categories. These strategies are mainly geared towards helping the firm expand using the four categories.
These four categories are; market penetration, market development, product development and diversification. The matrix simply shows firms which category works best for existing products and new products and also which work best for existing markets and new markets. Where existing products are concerned, market penetration works for existing markets while market development works for new markets.
On the other hand, product development works for new products in existing markets while diversification works for new products in new markets. Continue reading