Framework
Ansoff matrix
The question it answers
Should growth come from existing or new products in existing or new markets, and how does risk rise?
- Origin
- Ansoff, 1957; Ansoff, 1965
- Diagram type
- 2×2 matrix
- Level of analysis
- Firm
Diagram
Ansoff matrix
ExistingMarketNew
Market development
Take the existing product to a new market.
Medium riskDiversification
New product in a new market: the highest risk.
High riskMarket penetration
Sell more of the existing product in the existing market.
Low riskProduct development
New product for the existing market.
Medium riskExistingProductNew
Pitfalls
Pitfall
Assuming risk rises neatly with the grid. Real risk depends on internal capability, not only on the box.
Sources
References
Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.
- Ansoff, H.I. (1957) ‘Strategies for diversification’, Harvard Business Review, 35(5), pp. 113–124.No DOISource page
- Ansoff, H.I. (1965) Corporate strategy: an analytic approach to business policy for growth and expansion. New York: McGraw-Hill.No DOISource page