{"id":109003,"date":"2026-10-26T13:03:39","date_gmt":"2026-10-26T13:03:39","guid":{"rendered":"https:\/\/mailrelay.com\/glossary\/ansoff-matrix\/"},"modified":"2026-10-26T13:15:42","modified_gmt":"2026-10-26T13:15:42","slug":"ansoff-matrix","status":"publish","type":"glossary","link":"https:\/\/mailrelay.com\/en\/glossary\/ansoff-matrix\/","title":{"rendered":"Ansoff matrix"},"content":{"rendered":"\n

The Ansoff matrix is a strategy tool that crosses products and markets, existing or new, to choose between four ways of growing a business.<\/strong> Each option carries a different level of risk.<\/p>\n\n

It helps you answer a specific question: should I sell more of what I already have or venture into something new? And if I do, with which product and to which customers?<\/p>\n\n

What is the Ansoff matrix and who created it?<\/h2>\n\n

It was created by Igor Ansoff, a mathematician and business strategy professor. He introduced it in 1957 in the article Strategies for Diversification<\/em>, published in the Harvard Business Review.<\/p>\n\n

It is also known as the product-market matrix, the growth matrix or, in Spanish, matriz de Ansoff<\/em>. It is one of the classic tools of strategic marketing<\/a>, alongside the SWOT analysis<\/a> and Porter’s 5 forces<\/a>.<\/p>\n\n

The idea behind it is simple. The further you move away from what you already know, the more you risk.<\/p>\n\n

What are the 4 strategies of the Ansoff matrix?<\/h2>\n\n

The matrix has two axes: products (existing or new) and markets (existing or new). Crossing them gives you four strategies:<\/p>\n\n

<\/th>Existing market<\/th>New market<\/th><\/tr><\/thead>
Existing product<\/strong><\/td>Market penetration (low risk)<\/td>Market development (medium risk)<\/td><\/tr>
New product<\/strong><\/td>Product development (medium risk)<\/td>Diversification (high risk)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n
\"Ansoff<\/figure>\n\n

Market penetration<\/h3>\n\n

You sell more of the same product to your existing market.<\/strong><\/p>\n\n

You can do this with promotions, price<\/a> adjustments, more advertising or upselling<\/a> so your customers buy more.<\/p>\n\n

It is the least risky option, because you already know the product and your customers.<\/p>\n\n

It is also the most limited: at some point the market has nothing more to give.<\/p>\n\n

Market development<\/h3>\n\n

You take your existing product to new customers.<\/strong> That could be another region, another country, another sales channel or another target<\/a>.<\/p>\n\n

The risk goes up because you don’t know those customers as well. It’s a good idea to carry out a demand analysis<\/a> first and clearly define your buyer persona<\/a>.<\/p>\n\n

Product development<\/h3>\n\n

You create a new product for the customers you already have.<\/strong> It could be an improved version, an add-on or a new line.<\/p>\n\n

You have a competitive advantage<\/a> because you know your audience and they know you. The risk lies in development: investing in something nobody ends up wanting. A minimum viable product<\/a> helps reduce it.<\/p>\n\n

Diversification<\/h3>\n\n

You launch a new product in a new market.<\/strong> It is the riskiest strategy, because you start from scratch on both fronts.<\/p>\n\n

In return, it can open up a different source of revenue and reduce your dependence on a single business model<\/a>.<\/p>\n\n

Ansoff matrix example<\/h2>\n\n

Imagine a small online natural cosmetics store. Its best-selling product is a moisturizing cream, and most of its customers are women aged 30 to 50 in Spain. These would be its four options:<\/p>\n\n