Ansoff Growth Matrix - 18

Ansoff matrix was developed by applied mathematician and business manager H. Igor Ansoff and was published in the Harvard Business Review in 1957. The Ansoff Matrix is often used in conjunction with other business and industry analysis tools, such as the SWOT to support more robust assessments of drivers of business growth.  

Ansoff's Growth Matrix is the tool that allows you to identify your strategic options and their respective risks. It's all about interpreting new markets or new products against existing markets and existing products.  

It's another 2x2 grid with the markets (customers) on one axis and the products (services) on the other. Each of the four quadrants represents a specific combination of markets and products. 

1. Existing Market, Existing Product: This is all about maximizing the existing products, systems, and opportunities you have, it relies on the things that you know work well, the least risky option – “Market Penetration”. 

1. Existing Market, New Product: It's about expanding the product portfolio, perhaps developing a new product or service or system, this requires investments and time. – “Product Development” 

1. New Market, Existing Product: This means market development with the same product portfolio. No new products, systems or services but focusing on targeting new or different demographics. – “Market Development”. 

1. New Market, New Product: It's about diversifying both aspects and it's the riskiest option to pick. It depends on the risk appetite of your organization and whether that path makes sense. Sure, it's risky, but it may give you the highest return. – “Diversification” .