Ansoff Matrix Template
Explore opportunities for growing your business.
About the Ansoff Matrix template
What is an Ansoff Matrix?
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.
3x3 Prioritization Method
It’s all about assessing a task or idea, and quickly deciding the effort it will take and the potential impact it will have—ranked low, medium, or high. That’s what the 3x3 prioritization method does: Help teams prioritize and identify quick wins, big projects, filler tasks, or time-wasters. With nine bucket areas, it offers slightly greater detail than the 2x2 Prioritization Matrix (or Lean Prioritization Method). It’s easy to make your own 3x3 prioritization matrix—then use it to determine what activities or ideas to focus on with your valuable resources.
When your team is collaborating on a large project, keeping track of the many tasks and multiple timelines can be a challenge. That’s why you need a milestone chart. These visual representations of important project events will make it simple for your team to stay on schedule and reach goals on time. And it’s so easy to get started — just determine the major milestones, use our template to create a milestone chart, and define the key dates and deliverables each milestone will require.
For better or for worse, your company’s chances for success hinge partially on your market. As such, before you start building products and planning strategies, it’s a good idea to conduct a product positioning exercise. A product positioning exercise is designed to situate your company and your offering within a market. The product positioning template guides you to consider key topics such as defining your product and market category, identifying your target segment and competitors, and understanding your key benefits and differentiation.
Have an overwhelming list of to-dos? Prioritize them based on two key factors: urgency and importance. It worked for American president Dwight D. Eisenhower, and it can work for you—this decision-making framework will help you know where to start and how to plan your day. With our template, you can easily build an Eisenhower Matrix with a quadrant of key areas (Do, Schedule, Delegate, and Don’t Do) and revisit it throughout the day as your priorities change.
Work Breakdown Structure
A work breakdown is a project management tool that lays out everything you must accomplish to complete a project. It organizes these tasks into multiple levels and displays each element graphically. Creating a work breakdown is a deliverable-based approach, meaning you’ll end up with a detailed project plan of the deliverables you must create to finish the job. Create a Work Breakdown Structure when you need to deconstruct your team's work into smaller, well-defined elements to make it more manageable.
The Sailboat Retrospective is a low-pressure way for teams to reflect on how they handled a project. By defining your risks (the rocks), delaying issues (anchors), helping teams (wind), and the goal (land), you’ll be able to work out what you’re doing well and what you need to improve on for the next sprint. Approaching team dynamics with a sailboat metaphor helps everyone describe where they want to go together by figuring out what slows them down and what helps them reach their future goals.