Course Content
External Strategic Analysis
External Analysis, PEST, Porter’s Approach to Industry Analysis
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Unit VI: Strategic Management

Ansoff’s Product Market Growth Matrix : Harry Igor Ansoff : 1957

 

I. Introduction

  1. The Ansoff Matrix, also known as the Product-Market Growth Matrix, is a strategic tool created by Harry Igor Ansoff in 1957.
  2. It helps companies identify potential growth opportunities by focusing on products and markets.
  3. The matrix presents four different growth strategies based on whether the company wants to focus on existing or new products and whether it wants to target existing or new markets.

II. Growth Matrix Graph

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III. 🧩 The Four Growth Strategies in the Ansoff Matrix:

Strategy Products Markets Risk Example
Market Penetration Existing Products Existing Markets Low Risk Coca-Cola increasing market share
Product Development New Products Existing Markets Medium Risk Apple launching new iPhone models
Market Development Existing Products New Markets Medium to High Risk McDonald’s expanding to new countries
Diversification New Products New Markets High Risk Mergers & Acquisitions