Strategy
Ansoff matrix
Grow your company.
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Ansoff matrix vs The product/market matrix (Ansoff)
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Strategy
The product/market matrix (Ansoff)
Ford’s story is not unique and not new. Igor Ansoff, author of the first book exclusively on corporate strategy in 1965, created his product/market.
Read articleChoice logic
Use this when.
To identify credible routes for company growth.
Use the matrix—or its underlying logic—to assess a growth portfolio and make the compounding risk of new products, customers and geographies visible.
Extracted signals
Strengths, limits, and pitfalls.
Ansoff matrix
- Begin with market penetration and quantify each customer’s share of wallet. This establishes how much growth may be available before the company accepts the greater uncertainty of new products or markets.
- Use the matrix to compare where long term growth could create the greatest impact for the least acceptable risk.
- A sound choice requires substantial research, but excessive information can produce the “paralysis through analysis” associated with Ansoff’s work.
Watch for
- Do not choose a quadrant because it sounds ambitious. The matrix identifies direction, not attractiveness, capability, economics or likely competitive response; investigate those factors before committing resources.
The product/market matrix (Ansoff)
- Draw the 2 × 2 matrix and show how much forecast growth depends on each quadrant, not merely how many initiatives appear there.
- Draw a 2 × 2 matrix with existing and new products on the horizontal axis and existing and new markets on the vertical axis. Place each material sales initiative for the planning horizon in a quadrant and show its share of forecast growth.
- If most uplift comes from penetration, market development or product development, the plan retains familiarity on at least one dimension. If it depends on diversification, identify the additional capabilities, investment, learning time and governance needed, then apply a higher burden of proof.
Watch for
- The compact matrix can hide very different degrees of novelty. Define what ‘new’ means and analyse capability and geography risk separately.
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Application bridge
Related templates.
Program Benefits Transition PlanProgram Benefits Transition Plan Purpose. Use this plan to move benefit-enabling outputs, responsibilities and capabilities from the programme into the environment that will use and sustain them. The receiver may be a customer, an operational unit such as product support, customer support or service management, or another programme that is operating or about to begin. Application. Transition is moStakeholder RegisterStakeholder Register Purpose. Use the stakeholder register as the programme's controlled, evolving record of the people and groups who participate in, influence or are affected by the programme. Start from the business case and initial stakeholder identification, refine it during planning and keep it current throughout execution. Appropriate extracts may support the stakeholder engagement and commComponent Initiation RequestComponent Initiation Request Purpose. Use this request to obtain formal approval for a project, subprogramme or operational workstream to become a programme component. It explains the need, feasibility and justification, including why coordinated programme management should create more value than managing the work independently. Application. The programme manager normally prepares the request withBenefits Realization ReportBenefits Realization Report Purpose. Use this report to show which programme benefits were realised during a defined period, which expected benefits were delayed or missed, and which new benefits have emerged. Each entry should trace to the business case and benefits-realisation plan so decision-makers can distinguish delivered value from completed activity. Application. Benefits become meaningful