CHINHOYI UNIVERSITY OF TECHNOLOGY

ENTREPRENEURSHIPANDBUSINESS
SCIENCES

Group No: 28
Program: Bachelor of Science Honours Degree in Supply Chain Management
Module: Principles of Entrepreneurship
Level: 1.2
Assignment: Briefly describe the following marketing strategies about the Ansoff
Matrix. Using practical examples
 Market penetration
 Diversification
 Market development
 Product development
Lecturer: DR Ngorora
Due Date: 22/05/2026
Introduction
The Ansoff Matrix, developed by Igor Ansoff in 1957, is a strategic framework that helps
businesses identify growth opportunities by analysing the relationship between products
(existing or new) and markets (existing or new). It categorizes growth strategies into four
quadrants: market penetration, market development, product development, and
diversification. Each strategy carries varying levels of risk and reward, making it essential for
businesses to evaluate their current position and resources before implementation.

This assignment examines the four strategies of the Ansoff Matrix with practical examples
from Zimbabwe, a country with a dynamic and evolving business landscape. By exploring
each strategy in detail, this assignment aims to provide actionable insights for businesses
seeking sustainable growth.

Market Penetration
Market penetration is a strategy in which a business seeks to increase sales of existing
products in existing markets. This is the least risky strategy because the company already
understands the product and the customers it serves. This strategy is particularly affective in
markets where demand is already established and businesses aim to capture a larger share
of the market. Businesses achieve market penetration by reducing prices, improving
customer service, increasing advertising, offering promotions, and strengthening distribution
channels. The goal is to gain a larger market share and encourage customers to buy more
frequently.
For example, In Zimbabwe, a bakery such as Bakers Inn can use market penetration by
introducing discounts, loyalty cards, and increased advertising to encourage existing
customers to purchase more bread and confectionery products. Mobile network providers
such as Econet Wireless Zimbabwe often use promotional bundles like “Smart For You” and
bonuses to attract more users and increase usage among current customers. (Zhuwao, Lynn
- C25162310B)
Market penetration is suitable for entrepreneurs who have established products and want to
maximize revenue without developing new products or entering unfamiliar markets.

Diversification
Diversification involves introducing new products into new markets. This is the riskiest
growth strategy because both the product and the market are unfamiliar to the business.
This strategy is often pursued when businesses seek to reduce dependency on a single
product line or market however it can also provide high returns.
There are two main types of diversification:
Related diversification- where the new product is connected to the existing business.

Unrelated diversification- where the new business activity is completely different.

For example, a Zimbabwean poultry farmer who begins producing and selling organic
fertilizer from chicken manure is engaging in related diversification. A clothing retailer that
starts operating a transport company is practicing unrelated diversification. (Wushe,
Thandiwe - C25162595L)
Another example would be Cassava Smartech, a Zimbabwean technology company, has
diversified its operations by entering the digital health sector. In 2024, the company launched
"Maisha Health," a telemedicine platform that connects patients with doctors through mobile
technology. This initiative targeted both urban and rural markets, addressing the country's
healthcare access challenges. ( Nemhara, Angel R - C25162410N)
The diversification into digital health was a bold move for Cassava, as it required significant
investment in technology and partnerships with healthcare providers. However, the platform
gained traction quickly, with over 100,000 users registered within the first year. By 2025,
Maisha Health contributed 12% to Cassava’s total revenue (Albato, 2026).
Diversification enables entrepreneurs to spread risk, exploit new opportunities, and generate
additional income streams. It is particularly useful when existing markets are saturated or
declining.

Market development
Market development occurs when a business takes its existing products into new markets, whether
geographical or demographic. This strategy carries moderate risks as it requires businesses to
understand and adapt to the unique characteristics of new market. These new markets may be
different geographic regions, new customer segments, or international markets, businesses need to
understand the preferences of new customers while maintaining the same product offering.

For example, a Zimbabwean honey producer who initially sells in Harare but expands to Bulawayo,
Mutare, and export markets such as South Africa is applying market development. Similarly, a local
crafts business may begin targeting tourists and online international buyers through e-commerce
platforms. (Mutakiwa, Tavonga R-C25164582X)

Another example would be Dairibord Zimbabwe a leading dairy and beverage company, has
pursued market development by exporting its product to neighbouring countries such as
Zambia, Mozambique and Botswana. By leveraging its strong brand reputation and high-
quality products, Dairibord has tapped into new geographical markets with similar consumer
preferences. (Isabel Zhuwao - C25163110G)

Market development helps entrepreneurs increase sales, broaden their customer base, and reduce
dependence on a single market.
Product Development
Product development focuses on creating new or improved products for existing markets. This strategy
is particularly effective for businesses with strong brand loyalty and a deep understanding of customer
needs. This strategy may involve adding features, improving quality, changing packaging, or creating
entirely new versions of existing products. (Nyadombo, Kundai - C25162286W)

For example, Delta corporation, Zimbabwe’s largest beverage manufacturer, has embraced
product development by introducing low-alcohol and alcohol- free beverages to cater to
health-conscious consumers. This move aligns with global trends toward healthier lifestyle
and addresses the growing demand for alternative drink options. In 2025 Delta launched
“Sparkling Lite” a low-alcohol sparkling beverage, targeting urban millennials and young
professionals. (Zimunu, Gabriel- C25162005N)
Delta success demonstrates how businesses can leverage innovation to meet evolving
consumer preferences and maintain their competitive edge in existing markets.
Another example, a Zimbabwean dairy company such as Dairibord Holdings can introduce lactose-
free milk, flavoured yogurt, or long-life milk for its established customers. A cosmetics entrepreneur
selling traditional skin care products may launch new variants using baobab oil or marula oil. (Vheremu,
Thulani - C25164240E).

Product development allows entrepreneurs to maintain customer loyalty, respond to competition, and
increase sales through innovation.

Conclusion
The Ansoff Matrix is a valuable tool for entrepreneurs and business managers because it
provides clear strategies for business growth. Market penetration focuses on selling more
existing products to current customers. Product development introduces new products to
current customers. Market development expands existing products into new markets.
Diversification creates new products for entirely new markets. Businesses can use these
strategies depending on their resources, market conditions, and risk tolerance. (Zenda,
Peace - C25163747U)

In Zimbabwe companies like Econet Wireless, Dartboard and Delta Corporation have
demonstrated how the four strategies can be applied successfully to achieve sustainable
growth and long-term success.
Reference
Igor Ansoff (1957). Strategies for Diversification. Harvard Business Review.
Corporate Strategy. (1965). McGraw-Hill.
Business Strategy. (2015). Profile Books.
Strategic Management Theory. (2017). Cengage Learning.
Growth Strategy in Business. (2012). Financial Times Press.
Harvard Business Review. (2020). Market Penetration, Product Development, Market
Development and Diversification Strategies.
Pearson Education. (2021). Strategic Growth Models and Application Hanover Research.
(n.d.). Grow in Your Markets with a Successful Market Penetration Strategy.
[Link]
successful-market-penetration-strategy/
Lighter Capital. (n.d.). What Is Market Development Strategy? (Definition and Examples).
[Link]
examples
Corporate Finance Institute. (n.d.). Ansoff Matrix - Overview, Strategies and Practical
Examples. [Link]
The Strategy Institute. (n.d.). The Ansoff Matrix: A Powerful Tool for Business Strategy and
Growth. [Link]
business-strategy-and-growth

SURNAME NAME REG NUMBER

ZIMUNU GABRIEL C25162005N