The Ansoff Matrix is used for planning and analysis of alternatives for business growth. This matrix considers existing and new markets and existing and new products for business growth and development. The Ansoff Matrix has four quadrants:
(1) Business Growth with Existing Products in Existing Markets. This approach is Market Penetration approach where the business is growing with its current product / service offerings in the current markets.
(2) Business Growth with Existing Products in New Markets. This approach is Market Development approach where the business is growing with its current product / service offerings in new markets.
(3) Business Growth with New Products in Existing Markets. This approach is Product Development approach where the business is growing with new product / service offerings in its current markets.
(4) Business Growth with New Products in New Markets. This approach is Diversification approach where the business is growing with new product / service offerings in new markets.