Class 11 Entrepreneurship Notes · CBSE
Market Expansion Grid
Market Expansion Grid — introduces Ansoff's framework for detecting new intensive growth opportunities through 4 strategic options. CBSE Class 11 Entrepreneurship notes.
Last updated: 10 Sep 2026
Notes
Introduction to Growth Strategies
Four Grand Strategic Categories
Stability maintenance
Expansion / growth
Retrenchment / divestment
Combination
The Market Expansion Grid(Ansoff's Product Grid) helps an entrepreneur detect new intensive growth opportunities. It crosses two questions — is the product current or new, and is the market current or new? The four answers are the four strategies below. Click any cell to open its detail.
Source: H.I. Ansoff, Corporate Strategy. The grid offers three expansion options: (A) Intensification, (B) Integration, (C) Diversification — intensification covers the first three cells, while the fourth cell is diversification itself. Integration is covered later in this chapter.
Key Takeaways
Key Takeaways
- Ansoff’s Market Expansion Grid has two axes — products (current or new) and markets (current or new).
- Market penetration (current × current) is the safest growth path; diversification (new × new) is the riskiest.
- Market development takes the same product to new customers; product development gives new products to the same customers.
- The four grand strategic categories are stability, expansion, retrenchment and combination — expansion is the growth path.
- So what? If your tiffin service wants to grow, you have four doors. Cheapest is penetration — get existing customers to order more often. Riskiest is diversification — a completely new product for a new market. Pick the door that matches your appetite for risk.