Ansoff Matrix

Posted in Marketing and Strategy Terms, Total Reads: 10090

Definition: Ansoff Matrix

The Ansoff matrix helps determine the future direction which the business should undertake considering the risks and benefits associated with these each of these endeavours. It basically provides a business with 4 strategies to explore.

 Ansoff Matrix

Market penetration

Under this strategy, the business sells existing products in the existing markets trying to increase

  • Either the number of consumers using the product that is bringing in new consumers
  • Consumption levels of the existing consumers

It mainly aims at 4 objectives-

  • Enhancing market share of the existing products
  • Securing market share of dominant markets
    • Restructure the existing market by thrashing out competition by aggressively promoting the product.
    • Increasing consumption levels of existing consumers

Market Development

Under this, the firm sells existing products in new markets which can be done through-

  • Exploring new geographical markets
  • Changing the packaging for the new markets
  • Developing new distribution channels
  • Differentiated pricing in different markets.

Product development

Here, firm introduces new markets into the existing markets. This is mainly done to adapt to the changing demands and accordingly modifying the products to create business.


Under this, the firm ventures with new products into new markets. This is most risky strategy out of all the ones described above.


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