The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth. It is named after Russian American Igor Ansoff, who created the concept. There are four Ansoff Matrix strategies:
- Market Penetration is the organization tries to grow using its existing offerings (products and services) in existing markets.
- Market Development is a firm tries to expand into new markets (geographies, countries etc.) using its existing offerings.
- Product Development is a company tries to create new products and services targeted at its existing markets to achieve growth.
- Diversification is when an organization tries to grow its market share by introducing new offerings in new markets. It is the most risky strategy because both product and market development is required.