3.1.2 Ansoff’s Matrix

Question 1

Corporate strategy

Answer 1

What direction do we want business to head in (using different theories)

Question 2

Ways a business can compete/best strategy for a bs=usi to be competitive

Answer 2

Porters matrix
Ansoffs matrix

Question 3

Existing products + existing market/1st box

Answer 3

Market penetration

Question 4

New products + existing markets/2nd box

Answer 4

Product development

Question 5

Existing products + new markets/3rd box

Answer 5

Marketing development

Question 6

New products + new markets /4th box

Answer 6

Diversification

Question 7

Market penetration + risk level + eval

Answer 7

Increasing current ms/boosting sales vol + rev
Promotion/advertisinemt
Build brand image
Offers
Repeat purchases
+ low risk
- limited growth
+customers know ur brand
- vulnerable if don’t innovate

Question 8

Product development (3)

Answer 8

Making mew products for an existing market
Extend product portfolio
Continuously innovate
Conduct market research
+ already have a customer base/familiar and trust
+ responds to customers needs
- time consuming
- expensive

Question 9

Market development (box 2)

Answer 9

Introducing existing products to new markets
Target diff market segments (sugar free/diets)
Use of penetration pricing to enter markets
- competing against established
+ no need for expensive p development
- limited understanding of new customers needs
+ potential for growth

Question 10

Diversification (box 4)

Answer 10

Completely new products in new markets
Adopt usp
Advertising
Conglomerate growth
Merges/takeovers
+ gain customers across multiple markets
+ spreads risk across multiple markets ( risk bearing economies)
- highest risk
- no expertise
- no customer loyalty

Question 11

What r the 4 placements of porters matrix

Answer 11

Across - low cost, differentiation
Down - mass, niche

Question 12

Distinct capabilities

Answer 12

Ability of business to be different and have traits that r difficult for other businesses to copy

Question 13

What are the 3 distinct capabilities?

Answer 13

Innovation
Architecture
Reputation

Question 14

John Kay said…

Answer 14

When a business a specific strength that is difficut for competitors to copy, it has a distinctive capability

Question 15

Innovation
Examples

Answer 15

Ability to develop/improve new products/services
Tesco - meal deal
Lidl - middle aisle/bakery

Question 16

Architecture
Examples

Answer 16

Relationships with employees, suppliers and customers
Tesco - self scan/krispy kremes
Aldi - own branded - subs

Question 17

Reputation

Answer 17

Brand image of busi ( build customer loyalty)
Tesco - petrol garage/mobile services
Aldi - cheaper in price