Igor Ansoff's 1957 grid of four growth paths based on new or existing customers and new or existing products: market penetration, market development, product development and diversification. Risk rises as you move away from what you already know.
When planning growth, weighing a new product or new market, and explaining to leadership how risky a proposed move is.
Penetration: win more share with current customers via loyalty offers; Market development: take an existing service to a new city; Product development: a lawn company adding snow removal; Diversification: a gym opening a supplement brand.
A clean way to name the growth bet you are making. Flagged when a team jumps to diversification before exhausting penetration.
