What is Ansoff Matrix?
Ansoff matrix is a strategic planning tool used to help businesses understand and decide on product and market growth strategies. It was first introduced by Igor Ansoff in 1957 and is also referred to as the Ansoff product-market growth matrix.
The Ansoff matrix looks at the existing and potential products a business offers, and the existing and potential markets for those products.
It’s used to identify the types of growth strategies a business could pursue, including market penetration, market development, product development and diversification strategies.
How the Ansoff Matrix Works
The Ansoff matrix has four categories of growth strategies:
- Market penetration: Selling existing products to existing markets.
- Product development: Selling new products to existing markets.
- Market development: Selling existing products to new markets.
- Diversification: Selling new products to new markets.
What are the Benefits of Ansoff Matrix?
The Ansoff matrix provides a framework to analyze and plan business growth. It helps businesses identify the product and market combinations that can help them achieve their growth objectives.
It also helps to identify potential risks associated with each growth strategy, and to prioritize the strategies that offer the greatest potential.
Examples of Ansoff Matrix
The Ansoff matrix is a useful tool for analyzing and planning growth opportunities. It can help businesses identify the product and market combinations that can help them achieve their growth objectives, and to identify potential risks associated with each growth strategy.
It’s important to remember, however, that the Ansoff matrix is a tool for analysis, not a decision-making tool. It should be used as part of a broader strategic planning process.