What is the Ansoff matrix?
The Ansoff matrix, or product-market growth matrix, crosses products (existing/new) with markets (existing/new) to give four growth strategies. H. Igor Ansoff introduced it in "Strategies for Diversification" (*HBR*, 1957) and expanded it in *Corporate Strategy* (1965).
📌 At a glance
- Author
- H. Igor Ansoff
- Published
- 1957, HBR 35(5)
- Axes
- Product × market
- Related
- SWOT analysis, Porter’s generic strategies
Four strategies
| Existing products | New products | |
|---|---|---|
| Existing markets | Market penetration | Product development |
| New markets | Market development | Diversification |
- Market penetration: grow share with current products in current markets; lowest risk.
- Market development: take current products to new regions or segments.
- Product development: new products for current customers.
- Diversification: new products in new markets; related or unrelated; highest risk.
Risk rises toward the bottom-right. The further from familiar products and customers, the more the firm doesn’t know.
Versus SWOT and BCG
SWOT diagnoses the situation, BCG evaluates an existing portfolio, and Ansoff chooses the direction of growth. They are often used together with STP and the marketing mix.
Limitations
It ignores competitor reactions and profitability and treats "new" as binary; boundaries blur in platform industries.
Frequently asked questions
- Which strategy is safest?
- Usually market penetration.
- Is diversification always risky?
- Related diversification leveraging existing capabilities is less risky than unrelated.
- What is the original source?
- Ansoff (1957), HBR 35(5): 113–124.
References
- Ansoff, H. I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113–124.
- Ansoff, H. I. (1965). Corporate strategy. New York: McGraw-Hill.
- Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson.