Ansoff Matrix
By: A Staff Writer
Updated on: Jul 19, 2024
What: Plots growth strategies on a matrix with axes of existing vs. new products and existing vs. new markets, resulting in four quadrants: Market Penetration, Market Development, Product Development, Diversification.
Who: H. Igor Ansoff, corporate strategist.
Why: Forces entrepreneurs to think critically about growth paths, including the level of risk they’re willing to take.
When: If sales are stagnating, when exploring expansion, or when deciding where to invest resources.
How:
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- Evaluate your current position (products + markets).
- Brainstorm ways to move into each of the other quadrants.
- Assess strategies for potential and risk.