Strategy
Ansoff matrix
Last reviewedWhat is Ansoff matrix?
Four growth routes by product and market: market penetration (existing products, existing markets), market development (existing products, new markets), product development (new products, existing markets), and diversification (new products, new markets).
When should you use Ansoff matrix?
Growth strategy cases, to make sure you have considered every route and their different risk levels.
What are its limits?
It lists routes but does not size or rank them, and it leaves out acquisitions as a way to take each route.
How do you tailor it to a case?
Size the most promising option in each box, then rank by value and risk. Risk usually rises the further you move from the current business.
Where does it come from?
H. Igor Ansoff, "Strategies for Diversification", Harvard Business Review, 1957.
Use a framework as a source of ideas, then put a structure built for this specific problem on the table. Reciting a framework by name is a common way to lose marks.