3.1.2 Theories Of Corporate Strategy Flashcards
Draw ansoffs matrix
Can’t do
According to ansoff, what were the two most important questions that a business needs to ask itself
Should I change the market or product or both
Which is the quadrants is the russets strategy and why
Diversification is the most risky because the business knows neither the product or the market
Which of the quadrants is the least risky and why
Market penetration is the least risky because the business knows both the product and the market
What is meant by market penetration
Market penetration is when a business aims to increase the market share with the same product in the same market
Identify 3 methods of implementing a market penetration strategy
Advertising promotion, sales promotion techniques, price discounting, recruiting more distribution strategies
Why would a business persue market penetration
If there is signifanct market potential remaining, fewer competitors or if the business risk profile it high
What is meant by market development
Market development is when a business aims to sell the same product in different markets
What are the two ways to develop a market
Launch existing products into a new country, repurpose their existing products to meet the needs of a different market segment
Why would a business overdue market development
A business might Persue market development to recoup r and d costs if incurred making the product
What is meant by product development
Product development is when a business launches a new product to its existing customers
What two ways are there to implement a product development strategy
Can be implemented through extension strategies or through using umbrella branding?
Why would a business persue product development
In order to get first mover advantage, or to offer customers a greater choice of product or extend the product lifecycle
What is meant by diversification
Diversification is when a business launches a new product into a market
Why would a business want to persue this diversification
This strategy has the highest risk but also highest potential reward so a business may do this if there is a gap in the market and lots of growth potential
