Which of the following is a growth strategy in Ansoff’s Growth Matrix?

• A. Market Penetration
• B. Acquisition
• C. Licensing
• D. Strategic alliance

Answer: (A)

In Ansoff’s Growth Matrix, growth strategies are defined by whether you’re changing products, markets, or both. Market Penetration is the path that grows the business by selling more of the existing product to the existing market. It aims to increase market share through tactics like promotions, price adjustments, stronger distribution, or encouraging more frequent use, and it’s typically lower risk because you’re leveraging current capabilities and markets. The other options—acquiring another company, licensing technology, or forming a strategic alliance—are external growth methods or partnerships, not one of the four quadrants of Ansoff’s matrix. The four growth options in the matrix are Market Penetration, Market Development, Product Development, and Diversification. So Market Penetration is the correct growth strategy in this framework.