Ansoff Matrix: The Ansoff Matrix is a useful marketing tool that has been developed in order to develop a vision for the companies in the future. They benefit in helping the analysts and the company management to understand the inherent nature of the business scenario and the market potential of the products which could then be applied beneficially during expansions (Hussain, et al, 2013). They basically comprise of four major factors they are market penetration, product growth and enhancement, market development and diversification of the products (Refer Appendix 1). This tool is beneficial to understand how to sustain in the existing markets and establish in newer markets. This has been an effective tool and has produced good results in the past. This can help the businesses in optimizing their resources (Mind Tools, 2015a). The major drawback of this Ansoff matrix is that they cannot explain some of the intrinsic factors in the markets. This matrix is merely analytical it does not give a wholesome picture. This is clearly a good tool for the planning phase it can be used as an initial tool for market assessment however this cannot be the only mandated tool in understanding the markets. There are other driving factors that this tool omits. It may give only a generalized picture of the markets (Arpan, 2011). This is its major disadvantage.
PESTEL Analysis: This analysis is done to understand the macroeconomics of a place. They primarily aid in helping the companies understand the political, social, scientific, ecological, legal and financial scenario of a macro economy. This helps the companies when they are planning to expand their operations or product sales services to other country markets, and also helps in market penetration (Mind Tools, 2015b).