| Mistake | Why it hurts | | :--- | :--- | | | You skip easier, cheaper wins in penetration or development. | | Calling a new channel “new market” | Selling on Instagram vs. in-store is still an existing market if the customer is the same. | | Ignoring synergy in diversification | Unrelated diversification often fails (e.g., many conglomerate breakups). | | Assuming “new market” means only geography | A new customer persona (e.g., selling B2C instead of B2B) counts as a new market. |
If you are leading a strategy session, follow these steps:
Are you analyzing the entire company or just one product line? The matrix is best applied to specific business units rather than a broad conglomerate.
| Strategy | Question to ask | Risk level | | :--- | :--- | :--- | | | “Can we sell more of this to the same people?” | ★☆☆ | | Product Development | “What new thing would our current fans love?” | ★★☆ | | Market Development | “Who else would buy what we already make?” | ★★☆ | | Diversification | “Are we ready to start a new business from scratch?” | ★★★ |
Amazon moving from an online bookstore into cloud computing (AWS). How to Use the Ansoff Matrix Effectively To get the most out of this tool, follow these three steps:
| Mistake | Why it hurts | | :--- | :--- | | | You skip easier, cheaper wins in penetration or development. | | Calling a new channel “new market” | Selling on Instagram vs. in-store is still an existing market if the customer is the same. | | Ignoring synergy in diversification | Unrelated diversification often fails (e.g., many conglomerate breakups). | | Assuming “new market” means only geography | A new customer persona (e.g., selling B2C instead of B2B) counts as a new market. |
If you are leading a strategy session, follow these steps: ansoff
Are you analyzing the entire company or just one product line? The matrix is best applied to specific business units rather than a broad conglomerate. | Mistake | Why it hurts | |
| Strategy | Question to ask | Risk level | | :--- | :--- | :--- | | | “Can we sell more of this to the same people?” | ★☆☆ | | Product Development | “What new thing would our current fans love?” | ★★☆ | | Market Development | “Who else would buy what we already make?” | ★★☆ | | Diversification | “Are we ready to start a new business from scratch?” | ★★★ | | | Ignoring synergy in diversification | Unrelated
Amazon moving from an online bookstore into cloud computing (AWS). How to Use the Ansoff Matrix Effectively To get the most out of this tool, follow these three steps: