Ansoff matrix

Tool for assessing the risks associated with strategic options. The matrix was developed by Russian-born US-based ‘father of strategy’ Igor Ansoff and relates new and existing products to new and existing markets.

The matrix is divided into four quadrants, with existing, followed by new, products along the horizontal axis, and existing, followed by new, markets along the vertical axis. Risk increases along the x-y line. This means that a strategy introducing a new product into a new market carries the highest risk, while introducing an existing product into an existing market carries the least risk.