Ansoff Matrix

Thinking Tools4.2 Expansive Idea FormationAlso known as Product-Market Growth Matrix, Ansoff Growth Matrix

Originated by H. Igor Ansoff (Strategies for Diversification, 1957).

Sorts growth options into four boxes by whether the product and the market are existing or new, each box carrying a different level of risk.

When to reach for it

Planning has produced a long list of growth ideas, and leadership needs to see which are safe extensions and which are bets on two unknowns at once.

How it runs

  1. Place the current business at existing products in existing markets.
  2. Put each growth option in one of the four boxes.
  3. Note the risk and the capabilities each box demands.
  4. Keep the options that fit the firm's appetite for risk.
  5. Sequence the chosen moves so risk builds gradually.

Where it sits in SOLVE eX

Go to the source

  • Strategies for Diversification, Harvard Business Review, 1957

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