Ansoff Matrix
Helps you decide where to grow: sell more to the same customers, find new ones, or make a new product.
What it is
A two-by-two table: products on one axis (the ones you have and new ones), markets on the other (current and new). You get four ways to grow, each with its own risk.
How to use it
- Market penetration: the same product to the same customers — more sales, repeat purchases. The safest way.
- Market development: the same product to new customers — another city, country or type of buyer.
- Product development: a new product for current customers — the ones who already trust you.
- Diversification: a new product in a new market. The riskiest way — check the other three first.
Example
A café in Prague. Penetration — a loyalty card for regulars. Market development — a second café in another district. Product development — beans and pastries to take away. Diversification — barista courses.
