Ansoff Matrix

Ansoff Matrix

Primary Category: Strategy & Portfolio Governance

Secondary Focus: Growth Direction, Risk Management, and Investment Discipline

Artifact Profile

Ansoff Matrix: Select Growth Strategy is a strategic decision artifact for evaluating and choosing among alternative growth paths. It helps organizations structure product–market choices in a way that makes ambition, uncertainty, and risk explicit, rather than implicit.

Using your products, markets, growth objectives, and risk tolerance, the artifact produces a clear framing of growth options and their relative risk. Instead of treating expansion ideas as equal, it enables leadership to compare strategic direction, capability demands, and governance implications before committing resources.

This artifact is built for executives and strategy teams who must balance growth ambition with risk management. It supports disciplined portfolio choices, clearer investment priorities, and stronger alignment between strategy and governance.

Three Key Questions This Artifact Helps You Answer

• Which growth direction best aligns with our strategic ambition and risk tolerance?

• Where are we pursuing incremental growth versus transformational expansion?

• How should governance, investment, and execution differ across growth options?

What This Framework Supports

This artifact supports organizations seeking:

• Structured evaluation of alternative growth paths across products and markets

• Explicit comparison of strategic ambition, uncertainty, and risk across expansion options

• Alignment between growth direction, capability requirements, and governance intensity

• Disciplined portfolio decision-making for incremental versus transformational growth

How It Is Used

The artifact provides a structured growth governance framework that guides executives, strategy teams, and portfolio leaders through:

• Mapping products and markets to distinguish penetration, development, and diversification paths

• Assessing relative risk, capability demands, and execution complexity of each growth option

• Comparing strategic alternatives using a common governance and investment lens

• Producing clear recommendations for prioritization, controls, and resource allocation

This enables leadership teams to treat growth choice as a governance decision, ensuring that ambition is matched with appropriate investment, risk management, and execution discipline.

What This Produces

• Clear classification of growth options by strategic direction

• Explicit articulation of relative risk across growth paths

• Improved alignment between ambition, capability, and governance

• A structured basis for portfolio prioritization and investment decisions

Common Use Cases

• Comparing alternative growth strategies across products and markets

• Assessing the risk profile of expansion initiatives

• Aligning portfolio investments with strategic ambition

• Supporting board or executive discussions on growth direction

• Designing governance and controls appropriate to strategic risk levels

How This Artifact Is Different

Unlike ad hoc growth discussions or generic strategy tools, this artifact treats growth choice as a governance decision. It explicitly links product–market direction to risk exposure, capability requirements, and execution controls, ensuring that expansion is pursued with appropriate discipline.

Related Framework Areas

This artifact is commonly used alongside other SolveBoard frameworks focused on:

• Portfolio governance, investment prioritization, and performance management

• Strategic risk classification and escalation governance

• Execution oversight, capability planning, and accountability systems

• Enterprise strategy review, market analysis, and growth planning

Related Terms

Growth strategy, Ansoff model, product market expansion, portfolio governance, strategic risk, market development, diversification strategy, business growth planning.

Framework Classification

This artifact is part of the SolveBoard library of structured decision and governance frameworks. It is designed as a repeatable growth strategy governance framework rather than a conceptual diagram or one-time strategic exercise.

Ansoff Matrix: Select Growth Strategy

Structuring product–market choices to balance growth ambition and strategic risk

Definition

The Ansoff Matrix is a strategic framework that evaluates growth options across two dimensions: products and markets. It defines four strategic directions—market penetration, product development, market development, and diversification—each representing increasing levels of uncertainty and risk. Within SolveBoard, the Ansoff Matrix is used as a decision-framing tool to clarify growth posture, compare strategic risk, and align governance with the chosen expansion path.

When to Use

• When selecting between alternative growth strategies

• When assessing risk levels associated with expansion options

• When aligning governance, investment, and execution with growth ambition

• When structuring portfolio-level strategic decisions

When Not to Use

• When the decision is operational rather than strategic

• When products or markets cannot be clearly defined

• When short-term tactical decisions are required

Common Mistakes

• Treating all growth options as equal without considering risk

• Selecting diversification without adequate capability or governance

• Failing to align execution controls with strategic risk level

Purpose of the Ansoff Matrix

The purpose of the Ansoff Matrix is to provide a structured way to evaluate growth strategies by clarifying the relationship between product novelty and market novelty. It enables leaders to explicitly compare risk exposure, capability requirements, and governance needs across strategic options before committing resources.

How to Apply

• Define current products and target markets

• Evaluate market penetration options (existing products, existing markets)

• Assess product development options (new products, existing markets)

• Assess market development options (existing products, new markets)

• Evaluate diversification options (new products, new markets)

• Compare risk, capability requirements, and execution complexity across options

Example Scenario

A consumer electronics firm evaluates growth options. Market penetration offers incremental share gains in existing markets. Product development introduces smart-home features to existing customers. Market development expands into emerging regions. Diversification explores healthcare devices. Leadership uses the matrix to select a balanced portfolio aligned with risk appetite.

Boundaries

The Ansoff Matrix does not assess operational feasibility, internal capabilities, or competitive structure in depth. It frames strategic direction only and must be paired with execution, governance, and risk analysis to support implementation.

What This Artifact Does

Structures growth options across product and market dimensions to compare strategic risk and direction.

You Provide

(You may provide some, all, or none of the items below. Partial inputs are valid.)

• Current product and service portfolio

• Target markets and customer segments

• Potential new products or innovations

• Potential new markets or geographies

• Strategic objectives and risk tolerance

• Written descriptions or pasted text

• Links to strategy documents or market analysis

• Files, PDFs, spreadsheets, images, and other uploads (always acceptable)

• Context notes

Core Question

Which growth direction best aligns with our strategic ambition and risk tolerance?

Decision Logic

• If risk tolerance is low → Prioritize market penetration or product development

• If growth ambition is high with moderate risk → Consider market development

• If pursuing transformational growth → Evaluate diversification with strong governance

What the Output Means

• Clear classification of growth options by risk level

• Strategic direction aligned with ambition and capability

• Structured input for portfolio prioritization and governance design

Do Not Use When

• The decision is tactical rather than strategic

• Products or markets cannot be meaningfully distinguished

You do not need to complete every section below. Provide only the information you have available or wish to provide. The AI will generate output using only the inputs you supply and will not assume or infer missing information.

Section 1 — Current Products and Services

What This Input Represents

Your existing offerings that define the current product base.

If You Have Materials, You May Provide (List file names here in your input document):

• Product or service catalogs

• Portfolio lists

• Revenue or product mix reports

• Slides, PDFs, or screenshots

Guiding Questions:

• What products or services do we currently offer?

• Which offerings are core versus peripheral?

• Which products generate the majority of revenue or strategic value?

Section 2 — Current Markets and Customer Segments

What This Input Represents

The markets, geographies, or customer segments you currently serve.

If You Have Materials, You May Provide (List file names here in your input document):

• Market definitions

• Customer segmentation analyses

• Sales by geography or segment

• Strategy or marketing plans

Guiding Questions:

• Which markets or customer segments do we currently serve?

• Where do we have strong versus weak penetration?

• Which segments are strategically most important today?

Section 3 — Potential New Products or Innovations

What This Input Represents

New offerings that would extend or change your product portfolio.

If You Have Materials, You May Provide (List file names here in your input document):

• Product roadmaps

• Innovation pipelines

• R&D; concepts

• Business cases or concept notes

Guiding Questions:

• What new products or services are being considered?

• How different are they from existing offerings?

• Which ideas are incremental versus transformative?

Section 4 — Potential New Markets or Geographies

What This Input Represents

Markets, regions, or customer segments not currently served.

If You Have Materials, You May Provide (List file names here in your input document):

• Market expansion plans

• Geographic growth analyses

• Customer research

• External market studies

Guiding Questions:

• What new markets or segments are being considered?

• How different are these markets from those we serve today?

• Which expansions carry the greatest uncertainty?

Section 5 — Strategic Objectives and Risk Tolerance

What This Input Represents

Your growth ambition and acceptable level of strategic risk.

If You Have Materials, You May Provide (List file names here in your input document):

• Strategic plans

• Risk appetite statements

• Investment criteria

• Board or leadership guidance

Guiding Questions:

• What are our growth objectives?

• How much risk are we willing to accept to achieve them?

• Do we prioritize incremental growth or transformational moves?

Section 6 — Supporting Context, Files, and References

What This Input Represents

Any additional information that would help the AI interpret your growth context accurately.

You May Include (List file names here in your input document):

• Competitive analyses

• Portfolio prioritization documents

• Financial projections

• Links to market research

• Pasted text or excerpts

Additional Instructions (Optional)

You may add extra instructions to further shape the output, including:

Requesting PDF or other output formats
Limiting page length or response size
Layout preferences (section order, headings, structure, templates)
Specifying tone, style, or format (executive, concise, detailed, formal, etc.)
Output consistency preferences (fixed structure, standardized phrasing, strict formatting)
Prioritization or scoring preferences (how gaps, risks, or actions should be ranked)
Desired mode behavior as outlined in the section below
Any other constraints, rules, or priorities relevant to your use case

If included, the AI will follow these instructions when they do not conflict with the bridge’s execution rules. More specific instructions generally produce more consistent, repeatable, and targeted outputs.

Desired Mode Behavior

Strict Mode

• Maximize determinism and repeatability
• Minimize wording variation, structure changes, and interpretive flexibility
• Do not extend beyond explicit user inputs

Balanced Mode (Default)

• Maintain structure and discipline
• Allow limited analytical judgment where inputs are incomplete
• Do not introduce external assumptions

Exploratory Mode

• Expand hypothesis space and analytical angles
• Surface alternative interpretations and scenario paths
• Still grounded only in user-provided inputs

If no mode is specified, default to Balanced Mode.

What This Enables

Based on your prepared inputs, this artifact will classify growth options across the four Ansoff quadrants—market penetration, product development, market development, and diversification—explicitly compare strategic risk, and identify the growth direction that best aligns with your objectives and risk tolerance.

Canonical Input Rule (For All SolveBoard Artifacts)

Documents are optional. Sections may be partially completed or left blank. Structured answers to any subset of guiding questions constitute valid input. The AI will evaluate only provided information and will not infer missing content.

AI Execution Instructions

You are operating in Bridge Execution Mode. Follow these rules exactly. Do not reinterpret, summarize, optimize, or override them. Do not introduce external knowledge, assumptions, or inferred content. Evaluate only user-provided inputs. If required information is missing or ambiguous, flag it rather than guessing. Output must follow the defined Output section exactly.

Users may provide some, all, or none of the input sections. Process only what is explicitly provided. Treat empty sections as intentionally omitted.

Purpose

Generate a structured Ansoff Matrix assessment that classifies growth options by product and market novelty and risk.

What This Bridge Answers

Which growth path should we pursue, given our ambition, risk tolerance, and capabilities?

Inputs (All Optional)

• Existing products and markets

• Proposed new products or services

• Proposed new markets or customer segments

• Strategic objectives and risk appetite

• Files, PDFs, spreadsheets, images, links, or other uploaded material

• Context notes

Note: Output Quality and specificity scale with input completeness. The user has been informed of this via the input sheet.

Processing Rules

A valid Ansoff output must satisfy all of the following:

• Each option is classified into one of the four Ansoff categories

• Risk level is explicitly stated for each category

• Strategic implications are clearly articulated

When inputs are sparse:

• Produce the most complete output possible with available data

• Explicitly flag what's missing and how additional inputs would enhance the analysis

• Do not infer or assume missing information

Execution Steps

• Review inputs to define current products and markets

• Classify proposed initiatives into the four Ansoff quadrants

• Assess relative risk and capability requirements

• Summarize strategic priorities and governance implications

Output

• Structured Ansoff Matrix

• Risk classification of growth options

• Strategic direction and portfolio implications

Failure Conditions / Misuse

• Misclassifying products or markets

• Ignoring execution and governance implications of high-risk options

Mode Behavior (From Input Sheet)

Strict Mode

• Maximize determinism and repeatability
• Minimize wording variation, structure changes, and interpretive flexibility
• Do not extend beyond explicit user inputs

Balanced Mode (Default)

• Maintain structure and discipline
• Allow limited analytical judgment where inputs are incomplete
• Do not introduce external assumptions

Exploratory Mode

• Expand hypothesis space and analytical angles
• Surface alternative interpretations and scenario paths
• Still grounded only in user-provided inputs

If no mode is specified, default to Balanced Mode.

Additional Instruction Governance

User-provided additional instructions must be followed exactly unless they conflict with core Bridge Execution Rules. If a conflict exists, Bridge Execution Rules take priority.

Additional instructions may control format, tone, structure, length, or ordering, but must not introduce inferred content, external knowledge, or speculative assumptions.

If instructions are ambiguous, flag ambiguity rather than guessing.

Additional Instructions Execution Rule

If the user provides instructions in the Additional Instructions field, they are binding execution constraints.

Failure to follow them constitutes a Bridge Execution Failure.

Reminder to AI: If a format is requested (e.g., PDF, DOCX), the final output MUST be delivered in that format.

Artifact Instructions

This guide explains what information the Ansoff Matrix artifact requires and how to prepare your inputs.

How to Prepare Your Input Document (Required Format)

Create a new Word (or similar) document.
Copy all text from the Input Sheet tab into the document.
Save it — this is now your Input Document.
Answer the guiding questions directly in the Input Document and reference any supporting files there.
Save the completed Input Document (Word, PDF, etc.).
Copy all text from the Bridge AI Prompt tab and paste it into the prompt field.
Attach the completed Input Document and any referenced files when submitting the prompt.

No Supporting Files? No Problem.

You can proceed without uploading any supporting documents, spreadsheets, dashboards, reports, or other attachments.

The Input Document is still required, but it may contain only plain-text answers to the guiding questions.

Written responses alone are sufficient for the AI to generate output.

Supporting files, links, and pasted materials are always optional.

Missing Inputs Are OK

You do not need to complete every section.
You do not need supporting files.

The AI will still run. It will:

Use only the inputs you provide
Skip or flag missing sections
Never fail due to incomplete information

Output quality scales with input depth — but execution never breaks.

Submitting Files

If you upload files, list each file name under the relevant “If You Have Materials” section in your Input Document. This ensures each file is clearly tied to its intended use.

What to Expect From This AI Bridge

This bridge generates a structured, high-value starting point, not a guaranteed final deliverable. Output quality improves as inputs become clearer, deeper, and more complete.

This artifact supports iteration. Users are encouraged to refine inputs, test variations, and rerun the bridge to improve results.

The AI organizes complexity and accelerates insight — but final judgment and decisions remain with the user.

In Short

Stronger inputs → stronger outputs
Iteration improves results
Cross-artifact testing can reveal new perspectives
This artifact enables progress, not perfection