Fiducia TogetherDiversification
Adding new products or new markets. Four directions, with different risk.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Ansoff's matrix names four growth directions: market penetration (existing product, existing market), product development, market development, and diversification (new product, new market).
Why it matters
Risk rises across the four. Diversification is the riskiest because both the product and the customer are unproven, and it is often chosen because the core business is stalling.
What it looks like in practice
Most growth is available in the first box — selling more of what you have to the customers you have. It is unglamorous and it has the highest success rate.
What to watch out for
Diversifying to escape a problem in the core business, which usually means running two problems with the same resources.
Where to get proper advice
Your own unit economics on the core before adding anything.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.