Ansoff matrix

The Ansoff Matrix can help you to identify a range of options for enhancing or expanding your activities. The tool presents four types of options in a 2x2 matrix, with one axis for your market (your users or customers) and another for your products or services. The lower end of each axis represents your existing products/market, and the outer end represents innovation or new opportunities.

The four types of options are:

  • Market penetration: improving or expanding your existing product(s) in your existing market(s).
  • Market development: promoting your existing products in new markets eg different geographical areas or new client groups
  • Product development: developing a new product or adapting an existing one for your current market
  • Diversification: developing a new product in a new market.

You can map your current products and markets onto the market penetration square and consider the pros and cons of doing more of what you are currently doing, or investing effort in raising the quality of your offer. The other three squares will help you explore new options for your organisation.

Benefits

This tool helps you to identify the full range of your choices for expansion in a customer-focused way.

Limitations

It doesn’t make the choices for you. You will need to explore the pros and cons of each option you identify.

When to use it

This tool is useful when you want to open up options about what you will do.

What are your experiences of using this tool? Share your triumphs and tribulations with our network members or write your own tips by commenting on this page.

More information on this tool is provided by our Sustainable Funding Team and in our guide Tools for Tomorrow.

Last updated at 17:54 Mon 12/Apr/10.

Discuss

How will this affect your organisation? Have you considered it during your strategic planning? Can you share any interesting relevant links?

Log in or join for free to comment.

Funded by Capacity Builders and Improving Support