Data Source and Methodology
This tool is based on the Ansoff Matrix framework, a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth. All calculations are strictly aligned with this framework.
The Formula Explained
The Ansoff Matrix evaluates strategies based on the dimensions of new and existing products and markets, presenting four strategic options: Market Penetration, Product Development, Market Development, and Diversification.
Glossary of Terms
- Market Penetration: Strategy to increase market share for existing products in existing markets.
- Product Development: Strategy to introduce new products to existing markets.
- Market Development: Strategy to enter new markets with existing products.
- Diversification: Strategy to enter new markets with new products.
Frequently Asked Questions (FAQ)
What is the Ansoff Matrix?
The Ansoff Matrix is a strategic planning tool used to devise strategies for growth.
How do I use this tool?
Input your current market and product details to explore growth strategies.
What if I have multiple products?
Consider each product separately to evaluate different growth strategies.
Is diversification always the best strategy?
Diversification is high-risk and should be evaluated carefully against business goals.
How accurate are the results?
The results are aligned with strategic frameworks but should be considered alongside other business analysis tools.