What is the Ansoff’s matrix?
The Ansoff’s matrix (also known as “product-market growth matrix,” “Ansoff’s model,” and “product-market expansion grid”) is a strategic business tool to help identify opportunities and risks of product and market development endeavors, under existing and new conditions. This framework consists of a 2x2 matrix based on the premise that, to devise a successful growth strategy, executives, managers, and marketers need to assess the question whether to enhance the performance of existing markets and products or to develop new ones.
The matrix is divided into four quadrants organized in two columns and raws to quickly visualize the opportunities drawn from the combinations of the market and product variables. These are:
1. Market penetration (existing product/existing market)
This quadrant relates to strategies to increase the market share.
2. Market development (existing product/new market)
Strategy options in this quadrant aim at the expansion into new markets (regions, foreign countries) as well as new market segments.
3. Product development (new product/existing market)
Strategies for product development involve modifying products, extending lines and creating new products to introduce in an existing market. These strategies—closely related to research and innovation—shall anticipate trends and customer needs to keep and improve the business’ competitive advantages vis-à-vis other players and market changes.
4. Diversification (new product/new market)
The riskiest of all strategic growth options, this involves product and market developments that vary in degree of similarity and synergy with the existing products and business experience, and might be associated with mergers and acquisitions (M&A).
How to create an Ansoff’s matrix with Vizzlo?
Create an elegant Ansoff’s matrix online. This vizzard offers an elegant template, easy to fill and ready to present. Check the examples to get inspired and follow these easy steps:
- Click on the text elements to directly edit them. It’s just as easy.
- Explore the theme options to pick your favorite or customize one to choose your preferred colors and fonts.
Ansoff’s Matrix template: key features
- Custom fonts and colors
- Custom line styles
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