Ansoff Matrix

The Ansoff Growth matrix is a tool that helps firms decide their product and market growth strategy based on objective analysis of industry structure and product type. It is one of the more popular tools for strategic management analysis, in the scenario of deciding the case for a related diversification of businesses and firms, which itself is a highly risky strategic decision.

The Ansoff Matrix was modeled by Igor Ansoff.  Ansoff was primarily a mathematician and an economist par excellence and is one of the earliest strategic management guru.

While the application has been explained in details in the previous diagram, it is crucial to understand that the Ansoff Matrix is completely a framework for Market Entry Strategy. The framework attempts to minimize the risk associated with businesses attempting to enter new markets.

A major limitation of this framework is that it does not take into consideration the factor of what stage in the life cycle (PLC Curve) the “Product” is currently as, while objectively trying to analyze the best strategy for market entry.


By the way, did you read out article on the frameworks for market entry strategies

Also do you know how the internet affects Porter’s generic strategy models

Author: Kar

Dr. Kar is in the Information Systems & Management area in one of the top QS Ranked universities of Asia/world. He has extensive experience in teaching, training, consultancy and research in Indian Institutes. He has published over 100 high impact research papers. He has hundreds of citations as per Google Scholar. He has also authored/edited 4 books. He is the Editor and Founder of Business Fundas. Note: The articles authored in this blog are his personal views and does not reflect that of his affiliations.