5.6

Ansoff Matrix

A four-cell grid of growth options formed by crossing existing and new products with existing and new markets.

H. Igor Ansoff, “Strategies for Diversification”, HBR 35(5), Sept–Oct 1957

What it does

Existing/new product against existing/new market, making the relative risk of four growth options visible.

When it breaks

It labels rather than directs. Knowing which box you are in says nothing about what to do inside it.

Case

Netflix ran textbook market development — the same product into new geographies — going from 50 countries in 2015 to over 190 by 2017. By Q2 2018 international streaming revenue exceeded domestic for the first time.

HBR — how Netflix expanded to 190 countries ↗

Diagram — not yet drawn

The four boxes sized by historical failure rate rather than drawn equal — diversification enormous and existing/existing small.

In the wild

Unvetted · not part of the tier assessment

What has been written about this tool in the last twelve months. Machine-retrieved and unchecked — everything above this line was checked.

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