Market Analysis can be applied to Ansoff's Matrix as the four different stages that its based around all have to be analysed in different ways. Market Penetration will be mostly based around market research which would analysis the market and see if their was a gap in the market for a new product innovation that a firm had and would look into their competitors and gain knowledge on the market they were going into.
Market development would involve a market analysis to gain information of how to further increase a firms market share by researching ways that competitors have increased their market share, taking into the account limitations that may occur due to amount of money available for the firm and sources available.
New product development will involve analysing the demands of the consumer and bringing out new products that will be compatible with products already bought out, to help enhance the consumers experience with their product.
Diversification will use the analysis that was used for market penetration, but use mainly primary research to know what areas of the market consumers would want the company to enter, find out the competition in a new market a firm is thinking of entering and use Porter's five forces to assess and show the competitions and difficulty of the market the firm is entering.
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