In the Ansoff Matrix, which growth strategy corresponds to new product and new market?

• A. Diversification
• B. Market Development
• C. Product Development
• D. Market Penetration

Answer: (A)

The growth strategy that combines a new product with a new market is diversification. In the Ansoff Matrix, diversification sits at the intersection of introducing something new (a different product) and entering a new customer base or geographic market. This moves beyond existing offerings and current customers, carrying higher risk but the potential for significant growth if the new product resonates in the new market.

For contrast, market development uses an existing product in a new market, product development uses a new product in an existing market, and market penetration sticks with the same product in the same market.