Ansoff Matrix

What is Ansoff Matrix?

Ansoff Matrix (Ansoff 1957) is a 4-cells based basic tool of analysis for marketing strategy. It consists of a planning tool able to help the business develop to define its own structure and growth strategy in the future. This matrix is based on the market and product on the axes. In practical terms, the matrix is actually split into 4 cells created by two dimensions: Product (X-ax) and Market (Y-ax). Both Product and Market Dimensions are further split into existing (old) and new. There are four potential options possible bound to a corporate strategy without any prospect of attention to external variabilities and in no quadric-dimensional environment.

Ansoff Matrix

Market Penetration: “increasing volume of sales to its present customers or finding new customers, without departing from an original product-market strategy” (p. 114). In other words, selling more of the same product to the same market.
Product Development: “retains the present mission and develops products that have new and different characteristics” (p. 114). In other words, selling new products to the same market.
Market Development: “adapt its present product line to new missions” (p.114). In other words, find a new market for the same product or one with minimal adaptation.
Diversification: “a simultaneous departure from the present product line and the present market structure” (p. 114). That is, selling new products into a new market.

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