Ansoff Matrix/Market Matrix
This matrix provides a way to think about where a company can expand their
The two axes are new or existing product and new or existing market. For
example, you are Diversifying your market when you take a new product into a
new market. When taking an existing product into a new market, you're
choosing to focus on Market Development. This simple grid enables rich and
sometimes eye opening discussion.
For fun, take this graphic and apply it to your career --- you can look
inside your current industry (market) with your current expertise (product)
OR look to change one of those variables and Develop or Diversify your
career. We love the simplicity and power of these 2 X 2 matrices.
A two-by-two matrix is a simple and effective way of presenting information.
It provides a big picture, single-glance view of options that are mutually
exclusive and collectively exhaustive. This matrix is divided into four
boxes, which indicate different strategic actions for each option. Single
options are plotted into the matrix taking two key decision criteria into
account. The chosen two dimensions are independent from each other. A good
matrix takes thought to develop and is then simple to utilize!