The Ansoff Matrix

The matrix lists four possible options, ordered by how much risk is involved, from least to most risky.

The Ansoff Matrix is a tool that can help define the options open to a business when deciding on a strategy for selling their products. The matrix lists four possible options, ordered by how much risk is involved, from least to most risky.

• To sell existing products or services into existing markets.
• To sell new products or services to existing markets (i.e., to sell new products to the same customers)
• To sell existing products or services to new markets.
• To sell new products or services to new markets.

When choosing which of these strategies to use to sell your products, consider your existing resources and competencies, taking into account how easy it would be for you to develop or acquire any that you currently lack, and the level of risk involved in undertaking each option.

ACTION POINT: Identify the products, services and markets to focus your strategy on.