The Ansoff Matrix is a strategic planning tool used by businesses to determine growth opportunities. It presents four strategies based on two dimensions: products and markets. The strategies include Market Penetration, Market Development, Product Development, and Diversification. Each strategy helps organizations assess risks and identify potential paths for expansion. By analyzing existing and new products in relation to existing and new markets, the Ansoff Matrix guides companies in making informed decisions. For instance, Market Penetration focuses on increasing sales of current products in existing markets, while Diversification involves introducing new products to new markets, which carries higher risk.