What is the growth matrix technique?

The Growth Matrix technique, often referred to as the Ansoff Matrix, is a strategic planning tool that helps businesses determine their product and market growth strategy. Igor Ansoff developed it in 1957, and it has since become a widely used framework for organizations looking to capitalize on growth opportunities. The matrix outlines four distinct growth strategies: Market Penetration (increasing sales of existing products to current markets), Product Development (introducing new products to current markets), Market Development (expanding into new markets with existing products), and Diversification (launching new products into new markets). By assessing the risks associated with each strategy, companies can make more informed decisions on how to pursue growth, whether by deepening their presence in current sectors or venturing into uncharted territory.