3.1.2 Ansoff's Matrix Flashcards
1
Q
What does Ansoff’s matrix help firm’s determine?
1
A
- Their right growth strategy
2
Q
What is the aim of market penetration?
1
A
- ^Market share
3
Q
What are the risks of market penetration?
3
A
- Market growth = too slow to achieve obj
- > Ambition = best staff look for ^challenge elsewhere
- Decline product lifecycle
4
Q
What are the rewards of market penetration?
3
A
- Know customers/comp well (exploit what they want)
- No market research
- Returns on +investment predictable (forecast)
5
Q
What are the main methods of market development?
2
A
- New geo market (export)
- New distribution channels
6
Q
What are the risks of market development?
2
A
- Cultural diff
- Diff consumer legislation, distribution channels
7
Q
What are the rewards of market development?
3
A
- Huge EOS
- Take time to understand cultural diff = localise product range
- Existing market saturated, ^growth
8
Q
What are the risks of product development?
2
A
- Market research ^costs
- Most new products fail (6/7 in UK)
9
Q
What are the rewards of product development?
2
A
- Differentiation, +value
- Exploit existing customer base (loyalty)
10
Q
What is vital, in terms of diversification?
1
A
- Plan, make sure financial position secure
11
Q
What is the main reward of radical diversification?
1
A
- ^Exciting for workforce, recruit the best
