What is the Ansoff Matrix?
The Ansoff Matrix is a strategic planning tool used by businesses to determine their product and market growth strategies. It was developed by Igor Ansoff in 1957.
The Ansoff Matrix consists of fore quadrants, each representing a different growth strategy
The Ansoff Matrix helps businesses evaluate the risks and potential rewards of different growth strategies. It provides a framework for strategic decision-making and helps companies determine the most appropriate growth path based on their resources, capabilities, and market conditions.
The Ansoff Matrix consists of fore quadrants, each representing a different growth strategy
- Market Penetration: Selling existing products to existing markets. This is the least risky strategy, as the business is operating in a familiar market with familiar products.
- Product Development: Developing new products to sell to existing markets. This involves creating new offerings to appeal to current customers.
- Market Development: Selling existing products to new markets. This involves identifying and entering new market segments or geographic areas.
- Diversification: Developing new products to sell to new markets. This is the riskiest strategy, as the business is operating in unfamiliar territory with unfamiliar products.
The Ansoff Matrix helps businesses evaluate the risks and potential rewards of different growth strategies. It provides a framework for strategic decision-making and helps companies determine the most appropriate growth path based on their resources, capabilities, and market conditions.