Neighborhood Bakery Ansoff Matrix
An Ansoff matrix helps a business discuss growth through existing or new products and existing or new markets. Market penetration focuses on selling more existing products to existing customers. Market development takes existing products to new customer groups or places. Product development adds new offerings for current markets. Diversification combines a new product with a new market and usually carries the most uncertainty. The matrix does not rank choices automatically. Use it to make the assumptions, capabilities, investment needs, and risks of each growth path visible before selecting an initiative.
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Scenario
A bakery is comparing four ways to grow beyond its current shop sales.
Key decisions
- Retain regulars: Test loyalty offers before adding new fixed costs.
- Reach new buyers: Assess footfall and costs for a station kiosk.
- Develop the range: Validate demand for gluten-free bread with current customers.
- Manage risk: Treat catering as a new product and new customer segment.
When to reuse this
Use this when a business needs to discuss growth options by product and market novelty.
Frequently asked questions
What are the four Ansoff strategies?
Which Ansoff strategy is riskiest?
Can small businesses use Ansoff?
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