The Ansoff Matrix is a tool used by businesses to plan for growth. It provides a framework for thinking about the risks and rewards of different growth strategies. The matrix has four quadrants: existing products, new products, existing markets, and new markets. Each quadrant represents a different type of growth strategy.
- Existing products: This is the simplest and least risky growth strategy. The business focuses on selling more of its existing products to its existing customers
- New products: This strategy involves introducing new products into the market. It is more risky than selling existing products because it requires investment in product development and marketing
- Existing markets: This strategy involves expanding into new markets with existing products. It is more risky than selling new products because it requires investment in market research and market entry
- New markets: This strategy involves expanding into new markets with new products. It is the most risky because it requires investment in both product development and market entry. However, it also has the potential for the highest reward.
The Ansoff Matrix is a valuable tool for businesses because it helps to identify growth opportunities and assess the risks associated with each opportunity.