Vertical growth in the Ansoff Matrix refers to which strategies?

Vertical growth in the Ansoff Matrix pertains to strategies that a company employs to expand its operations by either increasing its market share with existing products or developing new products for the current market. This approach focuses on leveraging current capabilities and resources to enhance sales within established markets.

Market penetration is about increasing sales of existing products in existing markets, which could involve strategies like lowering prices, increasing promotional efforts, or enhancing distribution channels. Product development, on the other hand, involves creating new products aimed at the existing customer base, which can lead to increased sales and customer loyalty.

By focusing on these two strategies, businesses can maximize the potential of their current market without having to venture into new market territories or completely new product lines, which can be riskier and require more resources. This explains why the answer related to market penetration or product development aligns with the concept of vertical growth in the Ansoff Matrix.