A PowerPoint strategic planning tool to develop your organization's product and market growth strategy.
What is the Ansoff Growth Matrix?
Ansoff Growth Matrix is a strategic planning tool to identify and analyze possible market and product growth options. The theoretical framework is named after Igor Ansoff, who developed the product-market strategy tool in 1957.
Ansoff Growth Matrix shows four growth alternatives to develop an organization in existing or new markets - with existing products or new products. Each option comes with different risk levels for an organization.
What are the 4 dimensions of the Ansoff Growth Matrix?
The target of the tool is to analyze and select the best option of one of the four Ansoff growth strategies:
- Market penetration (low risk profile)
- Market development (medium risk profile)
- Product development (medium risk profile)
- Diversification (high-risk profile)
Why use the Ansoff Growth Matrix?
The Ansoff matrix is used to determine the strategic direction of any company: what new products or services to offer, where to promote them, and to whom.
This strategic decision is crucial to the success of any business because the wrong decision will fail or fail to reach its potential.
The Ansoff growth matrix helps you understand which products or services you should launch first, second, etc., based on their risk-adjusted profitability.
This is done by comparing the products or services along two dimensions: upside potential and risk analysis, downside risk and resource commitment analysis, product/service discrepancy analysis, product/service transition analysis, product/service sequencing analysis, product/service exploitation analysis, and product/service neglect analysis.
How to create Ansoff Matrix?
To create an Ansoff matrix, list all the new products or services you’re considering. To do this, brainstorm topics, themes, or ideas related to your organization, products, and services. The issues could be different product categories, different types of customers, different distribution methods, distant target geographic areas, and different types of partnerships.
Once you have a list of topics, please think about the following questions: This information will help you figure out the relative attractiveness of each case and, consequently, help you prioritize which ones to include in the Ansoff matrix.
Once you have a list of topics, you need to assign each one a relative profit potential and relative risk.
The Ansoff Matrix in Practice
The Ansoff Matrix is a strategic planning tool that helps companies identify their product and market growth strategy. It provides a framework for analyzing a company's potential for growth by considering the relationship between its existing products and new markets.
Ansoff matrix can be helpful in different contexts, for example:
- A company that produces and sells organic food products may use the Ansoff matrix to identify growth opportunities. They may focus on market penetration by increasing sales to existing customers or market development by expanding to new geographical areas.
- A web development startup may use the Ansoff matrix to identify growth opportunities. They may focus on product development by offering new services such as mobile app development or diversification by consulting services.
It's important to note that each strategy carries a different level of risk, and the decision of which method to pursue should be based on a company's resources, capabilities, and goals.
Ansoff Matrix Template Conclusion
The Ansoff growth matrix helps you decide which products or services to launch first, second, etc., based on their risk-adjusted profitability.
This is done by comparing the products or services along two dimensions: upside potential and risk analysis, downside risk, and resource commitment analysis.
Ansoff Growth Matrix Template
in PowerPoint and Google Slides format
Ansoff Growth Matrix PowerPoint Template
This PowerPoint template is a good starting point for conducting an Ansoff Growth Matrix with fully editable templates and several visualization options. All PowerPoint slides can be put directly into action.
Just pick one of the five slides and enter your information. You can choose the best option for your organization based on your analysis.