Ansoff matrix

The Ansoff matrix is a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future business growth.

[1] It is named after Russian American Igor Ansoff, an applied mathematician and business manager, who created the concept.

To achieve increased sales for its current products, the company adopts more assertive promotion and distribution strategies.

Unlike other strategies that build upon existing strengths, diversification requires venturing into uncharted territory, where the organization may have little or no prior experience.

If the new product does not appeal to the local tastes, the business can face heavy loss, hence this approach is more suitable for large multinational corporations.

[8] Types of diversification can broadly be categorized as:[8] The Ansoff matrix is a useful tool for organizations wanting to identify and explore their growth options.