There are different ways to grow a business.

Igor Ansoff defined four strategies for growth and summarized them in the so called Ansoff Matrix. The Ansoff Matrix (also known as the Product/Market Expansion Grid) helps managers to easily summarize and compare these possible growth strategies with each other's risks.

The idea is that every time you step into a new quadrant (horizontally or vertically), the risk increases.

• Introduction
• Components of a Ansoff Matrix
• What is a Ansoff Matrix used for
• When to use Ansoff Matrix
• Using the Tool
• Example of Ansoff Matrix
• Ansoff Matrix tips
• Benefits and Limitations of Ansoff Matrix

Introduction

Growing a business is a process of enhancing some measure of the progress of a company. Company can expand in terms of staff, customer base, international coverage, profits, but growth is most often determined in terms of sales. There are various ways to grow a company.

Igor Ansoff defined four growth strategies and outlined them in the so-called Ansoff Matrix. The Ansoff Matrix (also known as the Product/Market Expansion Grid) helps managers to easily summarize and compare these possible growth strategies with each other's risks.

The idea is that every time you step into a new quadrant (horizontally or vertically), the risk increases. Each quadrant of the Ansoff Matrix will be elaborated below.