ANSOFF AND HIS MATRIX
Application: Innovation, Acquisition Strategy, Development of Marketing Strategy
Figure A.5 above represents Ansoff’s matrix as it is taught in colleges today and as it appears in text books across the world. (It is depressing that many inaccurately quote the source of this diagram as his 1957 Harvard Business Review article, where it does not actually appear. That article has the more detailed version below.) As taught, the idea suggests that firms distil their strategic options by focusing their thinking through a review of existing markets, new markets, existing products, and new products. So, even at its simplest, it is a useful mechanism to help leaders reach consensus during strategy debates.
The first step in its use is the analysis of product and market opportunities. This may begin with a simple list of all the existing product/market groups in which the company is established. Then using market reports, research and creative techniques like brainstorming, it is possible to identify other opportunities. Once the analysis is available the options can either be summarized, using judgement, into the simplified version of the tool or crafted into a more thorough analysis by creating ...