The Ansoff Matrix is a tool used by businesses to help them plan their product development. The matrix is made up of four quadrants, each of which represents a different approach to product development. The first quadrant, known as market penetration, involves selling more of the same product to the same market. The second quadrant, known as market expansion, involves selling the same product to a new market. The third quadrant, known as product development, involves creating a new product for the same market. The fourth quadrant, known as diversification, involves creating a new product for a new market. By using the Ansoff Matrix, businesses can carefully consider the risks and rewards of each approach before deciding which one is right for them.