Risk factor in new markets, new products
  Existing Products New Products
Existing
Markets
Market Penetration
lowests risk factor
Product Development
New
Markets
Market Development Diversification
highest risk factor
                   Ansoff-matrix
The high risk factor is a common characteristic for BoP-projects. Designers4Billions can use the Ansoff matrix to understand this topic. The Ansoff matrix shows four growth options for business formed by matching up existing and new products and services with existing and new markets. The matrix shows the risk that a particular strategy will expose. In this model, each time you move into a new quadrant, horizontally or vertically you increase risk of the business. Market penetration has the lowest risk factor, diversification the highest.
A problem in the emerging market business is that you work with new to the world-technologies, as well as with new to the world-markets. In the Ansoff matrix this is the highest risk category, which often holds disruptive change. You will go through enormous feelings of anxiety when you weight the risks of your project. There are moneylenders with expectations and technological development with preferences. And nobody knows the answers. And then, you have to convince moneylenders that the project will be a success based on expectations of technology. In my opinion, this is a multi-parameter, multi-uncertainty project in which personal considerations, personal motivations, but mainly personal experience of risk play and important role.
expert 4