The Ansoff Matrix Existing Markets/Existing Products – Market PenetrationMarket Penetration strategy means the continuation of an existing strategy. It may be appropriate in the short-term when the market is static or when the business is waiting to see how situations develop. However, in the long term such tactics are unlikely to be realistic or beneficial. They may reflect a lack of strategic awareness on the part of the management team.Market penetration involves gaining market share as opposed to maintaining it. When the overall market is growing, penetration may be relatively easy to achieve, because the absolute volume of sales of all firms in the market is growing and some firms may not be able to satisfy demand. In static or declining markets, a firm pursuing a market penetration strategy is likely to face competition.Existing Markets/New Products
