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2.9IntermediateModule 02 · Design Your Business

Ansoff Matrix

Find the right growth direction before committing resources

The prompt

Copy & paste ready
2.9Ansoff Matrix
Act as a growth strategy advisor using the Ansoff Matrix. My current business : [DESCRIBE PRODUCT AND MARKET] Current stage : [REVENUE, TEAM SIZE, KEY MARKETS] Growth objective : [WHAT YOU WANT TO ACHIEVE IN 12–24 MONTHS] Analyse all four Ansoff quadrants for my situation: MARKET PENETRATION : How much more can I extract from existing product + existing market? MARKET DEVELOPMENT : Which new markets could my current product serve with minimum change? PRODUCT DEVELOPMENT : What new products could I offer to my existing customers? DIVERSIFICATION : Where is new product + new market justified by strategic opportunity? Recommend the highest-leverage quadrant for my stage. Which growth strategy should we pursue? Market Penetration Diversification Lowest risk, focuses on Highest risk, enters new existing customers and markets with new products. markets. Market Development Product Development Medium risk, expands to new Medium risk, introduces new markets with existing products. products to existing markets.
LabelsReplace theseSwap the role below

LabelsReplace theseSwap the role below

Pro tip, from the book

Before looking at new markets or new products, ask AI to run a full Market Penetration analysis on your existing business. Most companies at under 20% market share have significant penetration opportunity they haven't fully activated. Penetration is always cheaper than acquisition of new markets.

Who should run this prompt

Module role profile

Who should stress-test your business model? Business models fail quietly — not all at once, but one flawed assumption at a time. The roles on this page represent the perspectives that expose those assumptions before the market does. Use internal roles to build and refine your model. Use outside perspectives to find the gaps your optimism is covering.

Choose any role to drop it into the prompt above. Only the highlighted opening clause changes — the rest of the prompt stays exactly as printed.

Internal rolesThink from inside the organisation
Outside perspectivesChallenge your blind spots

◆◆◆◆◆ → ◆ seniority, board level down to specialist outside the organisation

How to make any role sharper

  1. Add years of experience: "...with 15 years in enterprise SaaS" produces different depth than just the title.
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  3. Add their communication style: "Be direct. Flag risks first. No jargon." changes the tone entirely.
See also: 1.3 Role Prompting - The Expert Chair

Use this when

The problem it solves

Your core business is working and you're ready to grow but you're unsure whether to go deeper with existing customers, expand to new markets, launch new products, or do something entirely new. Every direction feels possible and none feels obvious.

How the framework works

From the printed page

Developed by Igor Ansoff and published in Harvard Business Review in 1957, the Ansoff Matrix maps four growth strategies against two dimensions: existing vs new products, and existing vs new markets. Market Penetration (existing product, existing market) is lowest risk. Market Development (existing product, new market) and Product Development (new product, existing market) are medium risk. Diversification (new product, new market) is highest risk. Most businesses underinvest in penetration and over-invest in diversification.

The method, in four moves

Do these in order
1

Map your current position on the matrix honestly.

2

For each quadrant, estimate the level of investment and risk required.

3

Start with Market Penetration most businesses have not fully captured their existing market.

4

Only move to Diversification after the other three quadrants are saturated. Amazon spent seven years dominating book retail before expanding to electronics, then all products, then cloud services. Each move followed the Ansoff sequence penetrate first, develop markets second, diversify last. The discipline of exhausting one quadrant before entering the next is what made each expansion defensible. IN PRACTICE

Where the framework comes from

Igor Ansoff, Harvard Business Review — Strategies for Diversification, 1957

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