Ansoff's Matrix helps businesses organize growth ideas into existing or new products in existing or new markets, with four quadrants that represent different growth strategies with varying levels of risk. The lowest risk is market penetration by selling more to existing customers. Higher risk strategies include market development by entering new geographic or industry markets, product development by creating new products for existing customers, and diversification by developing new products for new markets. The document provides examples for each quadrant to illustrate different growth opportunities and recommends understanding the risks before pursuing strategies that move the business away from its core.

1. Business
Growth
Strategies
“30 ways to grow
your software
business”

2. Ansoff’s Matrix helps simplify thinking and
organize growth ideas into ‘existing’ or ‘new
products’, each in ‘existing’ or ‘new markets’.
• In its simplest form the matrix illustrates
four ways a business may grow and the
risks associated with each option.
• The lower left quadrant is where you are
today with your existing products/services
serving your existing markets. From a
risk point of view the safest thing to do is
to stay in this quadrant and continue to
penetrate your market.
• However, if that can’t provide the growth
you need, you can add one of more
growth opportunities of another quadrant
but be sure to first understand the new
risks each carries.
Markets
Existing
New
NewExisting
Products or Services
Market
Development
Market
Penetration
Product
Development
Diversification

3. MARKET PENETRATION QUADRANT
• Let your customers know about
everything you sell
• Better understand your buyers
• Grow your sales team
• Add new direct sales channels
• Add new indirect sales channels
• Increase advocates and referrals
• Increase your marketing
• Add or increase content marketing
• Find more people like your
current customers
• Understand why people buy
from your competitors
• Understand your competitors’
strategy
• Change your pricing
• Win a government contract
• Purchase a competitor
"Even if you’re on the right
track, you’ll get run over if you
just sit there."
Will Rogers

4. MARKET DEVELOPMENT QUADRANT
• New geographical markets
• Communicate to the RIGHT
prospects
• New business models
• Which market segment(s) will
you compete in? Or will you
create a new segment?
• New local markets “Healthy growth is not engineered. It is the
outcome of growing the demand … the
outcome of having superior products and
skills… the reward for innovation,
cleverness, efficiency, and creativity.”
Richard Rumelt
• Partner with other
complementary software
solutions

5. PRODUCT DEVELOPMENT QUADRANT
• Add new services around
existing products
• Solve an adjacent problem for
existing customers
• Create a new product that
integrates with other products in
your current market
• Create ‘whole solution’ bundles
or suites
• Extend an existing product by
producing different variants
• Identify ‘over-served’ customers
• Prepare your organization for
growth – address existing
weaknesses
If you don’t help your
customers reach greater
heights, who will?
Your competitors?”
Don Schultz

6. DIVERSIFICATION QUADRANT
• Create a new product that
integrates with others’ products
to address a new market
• Create a new product that
integrates with currently
competitive software platforms
• Create a new product that is
independent of currently used
platforms
• Reinvent your company
Obviously ‘Diversification’ could be anything new but
company reinvention is usually based on established
competencies, technologies or assets in one of three ways:
• Redefine their value proposition
• Refocus their core business
• Move into a new industry
Generally speaking seek to improve your competitive
position, and be tenacious and patient to look beyond this
year and try to predict where the world is heading.
Prepare for what the competitive landscape will look like
in three or more years.
“The customer experience is the next
competitive battleground.”
Jerry Gregoire, CIO, Dell Computers

7. Obviously the above are just ideas
and they need customizing and
developing to grow your business.
Need any help?
Jeffdrust@comcast.net
+1 650 208 5771
Skype: jeffdrust
www.linkedin.com/in/jeffdrust

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