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Ansoff’s Matrix

Ansoff’s Matrix organises growth options by existing or new products and existing or new markets: market penetration, market development, product development and diversification. It helps structure discussion of growth and capability requirements, but the new/existing boundary and risk depend on context. Diversification can be related or unrelated, and a category label does not demonstrate feasibility or automatically determine the best strategy.

Worked example

Selling an existing service in a new geographic market is market development; developing a new service for existing customers is product development.

Common mistake

Do not reverse the product and market axes or assume every diversification has the same risk regardless of capabilities and relationships.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA APM Supporting September 2026–June 2027
ACCA SBL Direct September 2026–June 2027