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Ansoff Matrix Template

Explore opportunities for growing your business with the Ansoff Matrix Template.

About the Ansoff Matrix template

When your business is doing well, it can be easy to slip into complacency. But if your organization is to keep growing and scaling, you’ll have to look for new ways to boost your bottom line and reach new customers. The Ansoff Matrix, also known as the product or market expansion grid, can help you do just that.

An Ansoff Matrix is a strategic tool that allows you to evaluate numerous options for growing your business. It helps you evaluate the potential risks of each option and to devise a plan that fits your specific organization. Igor Ansoff developed the matrix in 1957, and since then, numerous business leaders have used it to jumpstart their business’s growth. 

While there are some variations, the typical Ansoff Grid contains four quadrants. Each quadrant contains a potential growth strategy. Whenever you move into a new quadrant, either horizontally or vertically, your risk increases.

How do you use the Ansoff Matrix?

The Ansoff Matrix is divided into four sections that place markets and products/services depending on whether they already exist or represent a future opportunity. The four sections are market penetration, market development, product development, and diversification. Market penetration refers to selling more of your products and services to existing customers, market development refers to entering new markets, product development refers to developing your existing products or services, and diversification refers to moving into new markets with new products and services, increasing sales with your existing customer base, and acquisition. Go through each section with your team and determine where there are areas for making changes or improvements.

When should you use the Ansoff Matrix?

You should use the Ansoff Matrix whenever you do strategic planning for your marketing organization. You may find it beneficial to fill out the matrix at least once a year, though potentially more frequently if conditions are changing rapidly in your industry.    

What factors go into an Ansoff Matrix?

Factor 1 - Market penetration. The lower left quadrant contains the safest of the four options. Market penetration focuses on boosting sales of your product in your existing market. This is a low-risk option because you already know the market and you’re aware of your product’s strengths and weaknesses relative to your competitors. 

Factor 2 - Product development. The lower right quadrant is slightly more risky. In this approach, you’re introducing a new product into your existing market.

Factor 3 - Market development. The upper left quadrant is even riskier. In this case, you’re launching an existing product in a new market. This strategy involves either finding a new use case for your product or adding features so that it meets a different customer need.

Factor 4 - Diversification. The upper right quadrant contains the riskiest option. You’re introducing a new product into a new market.

Ansoff Matrix Template

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