Ansoff Matrix
Published by Igor Ansoff in the Harvard Business Review in 1957, the Ansoff Matrix (Product-Market Growth Matrix) is the simplest and most widely used framework for mapping growth strategy. It plots four strategic options across two dimensions — products (existing vs new) and markets (existing vs new) — creating four quadrants: Market Penetration (existing products in existing markets), Market Development (existing products in new markets), Product Development (new products in existing markets), and Diversification (new products in new markets). Each quadrant carries a different risk profile. Market Penetration is lowest risk — the firm knows its product and its customers. Diversification is highest risk — everything is new and unproven. The Ansoff Matrix is valuable in workshops because it makes growth strategy tangible. Teams can plot current initiatives, identify gaps, and have an explicit conversation about risk tolerance. It also exposes hidden assumptions: teams who say they want to 'grow' are often thinking about very different quadrants without realising it. The matrix works well as a rapid portfolio review, taking no more than 60 minutes with a focused group.
How to run it
- 1
Draw or project the Ansoff Matrix: 2x2 grid with Markets (Existing/New) on the vertical axis and Products (Existing/New) on the horizontal axis.
- 2
Label the four quadrants: Market Penetration (bottom-left), Market Development (top-left), Product Development (bottom-right), Diversification (top-right).
- 3
Brainstorm: list current strategic initiatives, growth ideas, and investment bets on sticky notes.
- 4
Place each idea in the most appropriate quadrant — discuss disagreements openly, as they often reveal strategic misalignment.
- 5
Discuss the risk profile of your current portfolio: are you overly concentrated in one quadrant? Are you under-investing in any?
- 6
For each quadrant, discuss what capabilities, partnerships, or investments are required to execute — and whether you have them.
- 7
Prioritise: agree on 2–3 growth moves with the best risk-reward balance given current resources.
- 8
Define next steps: who owns each growth move, what does success look like in 90 days?
Tips
Challenge the team to be honest about what counts as 'new' vs 'existing' — slightly adapted products are often mislabelled as innovation.
Risk is not symmetric across quadrants: a failed diversification is much more costly than a missed penetration opportunity.
Use the matrix early in planning cycles before resource commitments are made.
Variations
Run a 'Digital Ansoff' variant where the x-axis distinguishes between physical and digital product forms. Overlay the BCG Matrix output to see which quadrant your Cash Cows could fund.
Where it fits
Frequently asked questions
When should I use Ansoff Matrix?â–¾
Use Ansoff Matrix when you want to: Annual growth strategy workshops; New market entry planning; Product roadmap prioritisation; Board strategy sessions; Startup pivot analysis.
How long does Ansoff Matrix take?â–¾
Ansoff Matrix typically takes 45–120 minutes.
How many participants does Ansoff Matrix work for?â–¾
Ansoff Matrix works best for groups of 3–15 participants.
What materials do I need for Ansoff Matrix?â–¾
To run Ansoff Matrix you will need: Ansoff Matrix template (A1 or projected), sticky notes, markers.
How difficult is Ansoff Matrix to facilitate?â–¾
Ansoff Matrix is rated beginner — straightforward to facilitate even without prior experience.
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Try it freeMethod descriptions on Workshop Weaver are original content written by our team, based on established facilitation practices. This method was inspired by work from Igor Ansoff, 'Strategies for Diversification', Harvard Business Review (1957).