The Ansoff Matrix evaluates growth based on two dimensions: Products (Current vs. New) and Markets (Current vs. New).
| Current Market | New Market |
|---|
| Current Product | Market Penetration (Low Risk) | |
| New Product | Product Development (Medium Risk) | Market Development (Medium Risk) |
| | Diversification (High Risk) |
1. Market Penetration (Current Product + Current Market)
Focus on increasing usage or sales in your existing market.
- Strategies: Upselling/cross-selling, reducing churn, increasing usage frequency, or acquiring competitors' customers.
- Risk: Low.
2. Market Development (Current Product + New Market)
Focus on selling existing products to new customer segments or geographies.
- Strategies: Geographic expansion, targeting new personas, or using new sales channels.
- Risk: Medium.
3. Product Development (New Product + Current Market)
Focus on introducing new products or features to your existing customers.
- Strategies: Adding new features, creating adjacent product lines, or bundling products.
- Risk: Medium.
4. Diversification (New Product + New Market)
Focus on entering entirely new markets with entirely new products.
- Strategies: Related diversification (leveraging existing skills) or unrelated diversification (entering new domains).
- Risk: High.