Ansoff Matrix Tool
The Ansoff Matrix sorts growth options into four strategies: selling more of what you have to the customers you have (market penetration), taking current products to new markets (market development), bringing new products to current customers (product development), and new products for new markets (diversification). Risk rises the further an option moves from what the business already knows.
Everything above runs in your browser and saves to this device only. It opens on growth options for a European hotel group. Replace them with your own initiatives.
How it works
The classic matrix has four boxes. Real initiatives are rarely all old or all new, so this tool scores product newness and market newness from 0 to 10 and places each initiative inside the grid.
Risk = (product newness + market newness) ÷ 20 × 100
Bubble area shows the investment, so a large bubble in the top right is a large bet on the least familiar ground.
Frequently Asked Questions
What is the Ansoff Matrix?
The Ansoff Matrix is a growth planning grid that crosses existing and new products with existing and new markets. It gives four strategies, in rising order of risk: market penetration, market development, product development, and diversification.
Which Ansoff strategy is the riskiest?
Diversification is the riskiest, because a new product in a new market means the business knows neither the customers nor the offer. Market penetration is the least risky and usually has the lowest growth ceiling.
How does this Ansoff tool score risk?
It scores product newness and market newness from 0 to 10 for each initiative. Risk is the mean of the two scaled to 100, so an initiative that is half new on both axes scores 50.
What is an example of the Ansoff Matrix?
For a hotel group, loyalty tiers for current guests are market penetration, opening in Porto is market development, wellness packages are product development, and a booking app sold to other hotels is diversification. The tool opens on this example.
Is this Ansoff Matrix Tool free?
Yes. The Ansoff Matrix Tool is free and opens straight away in any modern browser, including on a phone. Initiatives save on this device only and export as PNG, PDF, or CSV.