ANSOFF MATRIX - RISK ANALYSIS

Ansoff Matrix Analysis - Easily and accurately produce a visual representation of a traditional marketing matrix progression of risk in 2 dimensions representing a level of 'Product' and 'Market' Familiarity. The resultant position represents the degree of commercial risk the product/service is putting on the company. As such, there is a direct relationship with product forecasting.

The model as understood, first developed by H. Igor Ansoff was a mathematician with an expert insight into business management. The Ansoff Matrix has four alternatives of marketing strategies; Market Penetration, Product Development, Market Development, and Diversification.

However, as published in many marketing books the 'Ansoff' matrix since the original publication circ. 1960, it is often described in its simplistic form whereby it fundamentally leads managers to believe there is a Boolean flip between each quadrant. So when it comes to the strategic analysis, incorrect conclusions could be made quite easily. Furthermore, this interpretation promotes a black or white strategic approach, which may not be the case. This model follows a much more structured approach when it comes to the derived position on the matrix itself...

The Product and Market dimensions are broken down into 6 attributes (which can be modified if required) per category meaning overall we measure 12 attributions (6 + 6) which are then weighted in terms of their relative importance. Up to 16 Products / Services can be entered into this model, as such a comprehensive positioning map can be produced detailing the degree of commercial risk each product (within a portfolio) has on the company - Furthermore each plot can have a third dimension whereby the size of the plot itself can represent Revenue / Profit/ Volume. Overall this is an extremely useful strategic planning tool and offers a compelling presentation to support your strategic rationale.