Complete firstClear baseline
Existing products, markets, regions and customer groups are named.
Without a baseline, “new” and the quadrants are arbitrary.
Method guideBusiness Strategy
Ansoff Matrix
A practical method guide: clarify prerequisites and materials, understand the complete process, and look up outputs, pitfalls, and stop criteria.
ComplexityLow
Time45-90 min
Participants2-8
FormatWorkshop + async
MaturityCanonical
01
Prerequisite
What needs to be finished first
Complete firstGrowth criterion
Desired growth, horizon and constraints are concrete.
Options cannot otherwise be compared meaningfully.
02
Preparation
What needs to be ready before start
Materials
Definitions of current products and markets, revenue and customer data, market evidence, capability profile and 2×2 matrix.
People / roles
Strategy owner, Product, Sales, Finance and Operations with access to market and capability data.
Pre-read
Existing segments, regions, offers, channels, core capabilities and active growth initiatives.
Time needed
60–120 minutes plus research and business-case work
Setup
Prepare axes for existing and new markets and products; document the criteria for “new”.
03
Core question
The one question this method answers
Which product-market direction offers viable growth with explicit risk and suitable capabilities?
04
Flow
Phases with goal, actions, output and pitfall
The Ansoff Matrix places growth options in Market Penetration, Market Development, Product Development and Diversification. It is an orientation frame: every option needs explicit definitions of existing and new, evidence, capabilities, investment and risk.
Ansoff Matrix
Fictional example
Four growth directions result from existing or new products and markets.
| Product | Existing market | New market |
|---|---|---|
| Existing productWhich options use existing products? | Market Penetration: Multi-year contracts with care facilities in northern Germany. | Market Development: Classroom courses for rehabilitation clinics in Austria. |
| New productWhich options require new products? | Product Development: Digital recertification for current care customers. | Diversification: Workforce scheduling software for home-care providers. |
1. Existing market
- Existing product
- Market Penetration: Multi-year contracts with care facilities in northern Germany.
- New product
- Product Development: Digital recertification for current care customers.
2. New market
- Existing product
- Market Development: Classroom courses for rehabilitation clinics in Austria.
- New product
- Diversification: Workforce scheduling software for home-care providers.
“New” is relative to the organisation and must be justified through market and capability distance.
- 1
Baseline
Define product and market
Goal
Binding axis definitions
Inputs for this step
- Portfolio and customer data
- Strategic scope
Actions
- Describe existing products by core benefit and capability.
- Bound existing markets by customer, need, geography and channel.
Output
Product-market baseline
Existing, new and boundary cases
Quality check
Is “new” defined relative to this organisation?
Pitfall
Every product variant is treated as a new product. Test novelty through changed capability, value logic or target customer.
Timing: 15–25 minutes
- 2
Options
Generate growth options
Goal
Populated Ansoff Matrix
Inputs for this step
- Product-market baseline
- Market and customer opportunities
Actions
- Generate Market Penetration, Market Development, Product Development and Diversification options.
- Write each as a specific offer, target market and growth mechanism.
Output
Growth options
Offer, market, mechanism and expected value
Quality check
Does each option belong in exactly one field? Does it state a mechanism rather than a revenue wish?
Pitfall
Broad labels span several quadrants. Split them into distinct product-market initiatives.
Timing: 25–35 minutes
- 3
Risk
Test assumptions and capabilities
Goal
Comparable risk profiles
Inputs for this step
- Growth options
- Evidence and capability profile
Actions
- Assess critical assumptions, capabilities, investment and cannibalisation.
- Rate irreversibility, learning time and portfolio dependencies.
Output
Risk and capability profile
Assumption, evidence, capability, investment and risk
Quality check
Does the profile reflect actual distance from current experience? Are diversification risks explicit?
Pitfall
An attractive market hides missing capabilities. Assess the capability gap, build path and learning time separately.
Timing: 30–45 minutes
- 4
Choose
Prioritise the direction
Goal
Reasoned growth direction
Inputs for this step
- Risk profiles
- Growth objective and constraints
Actions
- Compare strategic fit, evidence, potential, capability gap and risk.
- Record focus, parked options and explicit exclusions with rationale.
Output
Prioritised option portfolio
Priority, rationale and exclusion
Quality check
Is priority based on more than the largest market estimate?
Pitfall
All four directions become priorities. Use capacity and dependencies to choose a clear focus.
Timing: 20–30 minutes
- 5
Validate
Plan the next evidence
Goal
Staged growth plan
Inputs for this step
- Focus option
- Critical assumptions
Actions
- Choose tests or pilot stages for market and product assumptions.
- Set thresholds, owner, budget cap, date and stop decision.
Output
Validation and investment plan
Test, threshold, owner, budget and consequence
Quality check
Does the next move reduce the option’s largest risk?
Pitfall
The matrix translates directly into full investment. Gate investment on staged market and capability evidence.
Timing: 20–30 minutes
05
Artifact
What comes out at the end
Sketch: what the artifact looks like
Form
Ansoff Matrix with growth options, evidence, assumptions, capabilities, risks, priorities and next validation moves.
Versioning / ownership
Record portfolio definition and date; retain moved options with rationale.
Tool alternatives
- 2×2 Ansoff Matrix
- Option cards
- Risk and capability register
ansoff-matrix-working-template.md
Define the current product and market portfolio; explain “new” relative to the organisation and its capabilities.
Ansoff Matrix: Worksheet
Question
To be confirmed
Desired outcome
To be confirmed
Scope
Complete workflow Time: 60–120 minutes plus research and business-case work
Complete this worksheet on paper or in your own document during the work.
Preparation for this scope
Method setup
- Materials: Definitions of current products and markets, revenue and customer data, market evidence, capability profile and 2×2 matrix.
- Roles: Strategy owner, Product, Sales, Finance and Operations with access to market and capability data.
- Advance information: Existing segments, regions, offers, channels, core capabilities and active growth initiatives.
- Overall time needed: 60–120 minutes plus research and business-case work
- Setup: Prepare axes for existing and new markets and products; document the criteria for “new”.
Prepare for the work steps
Baseline: Define product and market
- Portfolio and customer data
- Strategic scope
Options: Generate growth options
- Product-market baseline
- Market and customer opportunities
Risk: Test assumptions and capabilities
- Growth options
- Evidence and capability profile
Choose: Prioritise the direction
- Risk profiles
- Growth objective and constraints
Validate: Plan the next evidence
- Focus option
- Critical assumptions
Ansoff Matrix
| Product | Existing market | New market |
|---|---|---|
| Existing product | ||
| New product |
- Existing product: Which options use existing products?
- New product: Which options require new products?
Enter concrete initiatives per cell and assess assumptions and capabilities separately.
H. Igor Ansoff: Strategies for Diversification
Baseline: Define product and market
Expected artifact: Product-market baseline
Existing, new and boundary cases
Entry:
...
- Is “new” defined relative to this organisation?
Options: Generate growth options
Expected artifact: Growth options
Offer, market, mechanism and expected value
Entry:
...
- Does each option belong in exactly one field?
- Does it state a mechanism rather than a revenue wish?
Risk: Test assumptions and capabilities
Expected artifact: Risk and capability profile
Assumption, evidence, capability, investment and risk
Entry:
...
- Does the profile reflect actual distance from current experience?
- Are diversification risks explicit?
Choose: Prioritise the direction
Expected artifact: Prioritised option portfolio
Priority, rationale and exclusion
Entry:
...
- Is priority based on more than the largest market estimate?
Validate: Plan the next evidence
Expected artifact: Validation and investment plan
Test, threshold, owner, budget and consequence
Entry:
...
- Does the next move reduce the option’s largest risk?
Open questions and next steps
...
Method guide: https://methodatlas.meierhoff-systems.de/en/methods/ansoff-matrix/run-sheet
06
Example output
Concrete filled scenario, fictional example
Fictional example for orientation. Counts and timings describe this case and are not universal requirements.
ansoff-matrix-beispiel.md
Concrete filled scenario, fictional example
Fictional example
Baseline: Classroom courses for care facilities in northern Germany.
Market Penetration: Multi-year contracts with current facilities. Market Development: Same classroom offer for rehabilitation clinics in Austria. Product Development: Digital recertification for current care customers. Diversification: Workforce scheduling software for home-care providers.
Focus: Product Development because customer need is evidenced and sales access exists. Largest risk: auditors accept digital evidence. Test: Two current customers and their audit body review a certificate prototype. Threshold: both customers ready to pilot and written audit requirements feasible.
07
Pitfalls
Recognize symptoms and steer against them
Quick overview, the full text is in the matching phase in the flow
- Define product and marketEvery product variant is treated as a new product.View in phase
- Generate growth optionsBroad labels span several quadrants.View in phase
- Test assumptions and capabilitiesAn attractive market hides missing capabilities.View in phase
- Prioritise the directionAll four directions become priorities.View in phase
- Plan the next evidenceThe matrix translates directly into full investment.View in phase
Trap
Define product and market
Symptom
Every product variant is treated as a new product.
What to do
Test novelty through changed capability, value logic or target customer.
Trap
Generate growth options
Symptom
Broad labels span several quadrants.
What to do
Split them into distinct product-market initiatives.
Trap
Test assumptions and capabilities
Symptom
An attractive market hides missing capabilities.
What to do
Assess the capability gap, build path and learning time separately.
Trap
Prioritise the direction
Symptom
All four directions become priorities.
What to do
Use capacity and dependencies to choose a clear focus.
Trap
Plan the next evidence
Symptom
The matrix translates directly into full investment.
What to do
Gate investment on staged market and capability evidence.
08
Stop criteria
When to pause, resolve prerequisites, or choose another approach
Current products and markets are undefined, making quadrant placement arbitrary.
The focus option has no testable growth assumption or responsible investment stage.
Finished the method guide?
Go to the profile for purpose, similar methods, and sources or continue to the next method in the catalog.