Ansoff Matrix (Growth Strategy)

Overview

The Ansoff Matrix maps four growth strategies along two axes: markets (existing vs new) and products (existing vs new). Each quadrant carries increasing risk — from market penetration (lowest) to diversification (highest). It forces a disciplined choice among growth paths.

When to Use

Trigger conditions:

• User planning growth strategy for a business
• User deciding between launching new products vs entering new markets
• User evaluating the risk-reward of different expansion options
• User asks "how should we grow?" or "new product vs new market?"

When NOT to use:

• For portfolio-level decisions across multiple products → use BCG Matrix
• For competitive positioning → use SWOT or Porter's
• When the question is about defending position, not growing