The Ansoff Matrix (also called the Product-Market Growth Matrix) is a strategic planning tool created by Igor Ansoff in 1957. It helps companies decide how to grow their business.
The matrix is based on a simple question: To grow, should we focus on existing or new products? And on existing or new markets?
This gives four possible growth strategies, each with a different level of risk:
Matrice d'Ansoff : outil d'aide à la décision pour choisir une stratégie de croissance en combinant produits (existants ou nouveaux) et marchés (existants ou nouveaux).
The matrix has two axes: Products (existing or new) on one side, and Markets (existing or new) on the other. The further you move away from what you already know, the higher the risk.
| 📦 Existing Products | 🆕 New Products | ||
| MARKETS | 🏠 Existing Markets |
MARKET PENETRATION Pénétration de marché ⬇ LOWEST RISK |
PRODUCT DEVELOPMENT Développement de produit ➡ MEDIUM RISK |
| 🌍 New Markets |
MARKET DEVELOPMENT Développement de marché ⬆ MEDIUM-HIGH RISK |
DIVERSIFICATION Diversification ⬆⬆ HIGHEST RISK |
💡 The further from the top-left corner, the greater the risk — because you move away from what you already know.
Pénétration de marché
Definition: Sell more of the same product to the same customers in the same market. The company does not change anything — it just tries to grow within what it already does.
Key question: How can we increase our sales with our current products to our current customers?
How to do it:
🌍 Real examples: Dalaa running more TV ads to increase sales in Morocco; Marjane launching a loyalty card to get existing customers to visit more often.
Développement de produit
Definition: Create new products or services to sell to your existing customers in the same market. You keep the same customers but offer them something new.
Key question: What new products could we offer to our current customers?
How to do it:
🌍 Real examples: Apple launching the Apple Watch to its existing iPhone customers; Centrale Danone Morocco introducing new flavored yogurt varieties for Moroccan consumers.
Développement de marché
Definition: Sell your existing products to new customers or in new markets. The product stays the same — you expand to new geographic areas, new customer segments, or new uses.
Key question: Who else could buy our current product that we are not reaching yet?
How to do it:
🌍 Real examples: Royal Air Maroc expanding to new African routes; a Moroccan cosmetics brand starting to sell in France targeting the Moroccan diaspora.
Diversification
Definition: Launch new products into new markets. This is the most ambitious and most risky strategy because the company enters completely unknown territory — both the product and the market are new.
Key question: What totally new business could we enter to grow?
Two types of diversification:
Why diversify?
🌍 Real examples: Virgin Group (music → airlines → banking → space); ONA Group Morocco (mining, food, finance, distribution — classic conglomerate diversification).
| Strategy | Products | Markets | Risk Level | Best when... |
|---|---|---|---|---|
| 📈 Market Penetration | Existing | Existing | LOWEST | Market is not yet saturated |
| 🔬 Product Development | New | Existing | MEDIUM | Strong R&D capability |
| 🌍 Market Development | Existing | New | MEDIUM-HIGH | Successful product to export |
| 🎲 Diversification | New | New | HIGHEST | Core market is declining |
Step 1: Analyze your current situation — what products do you sell, and in which markets?
Step 2: Identify your growth objectives — how much do you want to grow, and how fast?
Step 3: Assess your resources and risk tolerance — how much can you invest? How much risk can you take?
Step 4: Evaluate the four strategies and their risks using the matrix.
Step 5: Choose the most appropriate strategy (or a combination of strategies).
💡 Key principle: Most companies should start with Market Penetration (the safest option) before moving to riskier strategies. Diversification is usually a last resort or reserved for companies with strong financial resources.
The Ansoff Matrix tells you where to grow (which product-market combination). Porter's Generic Strategies tell you how to compete once you are in that market.
Together, these two tools help managers make complete strategic decisions: WHERE to grow, and HOW to win.
OCP is Morocco's state-owned phosphate company and the world's largest phosphate exporter. It is a perfect example of a company using all four Ansoff strategies over time.
📊 Conclusion: OCP illustrates how a large company can pursue multiple Ansoff strategies simultaneously — consolidating existing markets while expanding into new products and geographies.
| English | Français |
|---|---|
| Growth strategy | Stratégie de croissance |
| Market Penetration | Pénétration de marché |
| Product Development | Développement de produit |
| Market Development | Développement de marché |
| Diversification | Diversification |
| Related diversification | Diversification liée / reliée |
| Unrelated diversification | Diversification non liée / conglomérale |
| Existing market | Marché existant |
| New market | Nouveau marché |
| New product | Nouveau produit |
| Market share | Part de marché |
| Market saturation | Saturation du marché |
| Risk level | Niveau de risque |
| Research and Development (R&D) | Recherche et développement (R&D) |
| Geographic expansion | Expansion géographique |
| Customer segment | Segment de clientèle |
| Distribution channel | Canal de distribution |
| Brand loyalty | Fidélité à la marque |
| Synergy | Synergie |
| Conglomerate | Conglomérat |
| Core business | Activité principale / cœur de métier |
| Competitive advantage | Avantage concurrentiel |
| To grow / growth | Croître / croissance |
| To expand | S'étendre / se développer |
| To launch (a product) | Lancer (un produit) |
| To enter (a market) | Entrer sur (un marché) |
| To target | Cibler |
| To invest | Investir |
| To acquire | Acquérir |
| To diversify | Diversifier |