The Ansoff Matrix

The Ansoff Matrix is a strategic tool used by businesses to plan growth. It has four quadrants: 1. **Market Penetration**: Increasing sales of existing products in current markets. 2. **Market Development**: Introducing existing products to new markets. 3. **Product Development**: Creating new products for existing markets. 4. **Diversification**: Launching new products in new markets. Each option involves different levels of risk, with diversification being the riskiest. By analyzing these strategies, companies can decide how to achieve their growth objectives effectively.