The Ansoff matrix is a strategic planning tool which provides a framework to help marketers, executives and senior managers for future growth; this strategic planning tool was named after an applied mathematician and business manager named Ignor Ansoff.
Organizations use the Ansoff Matrix to plan and analyze their strategies for growth; this matrix demonstrates four strategies which can be used to help an organization to grow and also analyzes the risks associated with each strategy. The four strategies are the following:
- Market Penetration: This strategy focuses on increasing sales of existing products to an existing market.
- Product Development: This strategy places its focus on introducing new products to an existing market
- Market Development: This strategy places its focus on entering a new market using existing products
- Diversification: This places focus on entering a new market with the introduction of new products.