3.8

Question 1

Ansoff matrix

Answer 1

Existing Market and existing customers= market penetration
Existing product and new market= market development
Existing market and new product= product development
New product and new market= diversification

Question 2

Porter’s generic strategies

Answer 2

Cost and diversification
Mass market+ cost strategy= cost leadership
Mass market+ diversification strategy= diversification
Niche market+ cost strategy= cost focus
Niche market+ diversification strategy= diversification focus

Question 3

Bowman’s strategic clock

Answer 3

1 low price and low added value
2 low price
3 hybrid
4 differentiation
5 differentiation focus
6 risky high margins
7 monopoly pricing
8 loss of market share

Question 4

Core competencies

Answer 4

Aspects of a business that provides a competitive edge- could be cultural, the structure of the business, strategic, reputation

Question 5

Competitive advantage

Answer 5

An edge that needs to be maintained- may be difficult if in a fast pace industry