8. Choosing strategic direction Flashcards
1
Q
what is ansoffs matrix
A
strategic tool that businesses can use to help choose the market they wish to operate in and the products they will sell within that market
2
Q
existing markets, existing products
A
market penetration
3
Q
existing markets, new products
A
product development
4
Q
new markets, existing products
A
market development
5
Q
new markets, new products
A
diversification
6
Q
market penetration 4
A
- can be implemented quickly
- limited risk
- less expense and time
- heavy promotion may be required``
7
Q
market development
A
- avoids development of new products - saves costs
- brand name is already established
- depends if market is accessible
- modifications could be costly
8
Q
product development
A
- benefit from knowing customer base (research and promotion easier)
- can target new segments of the market
9
Q
diversification
A
- high risk
- related diversification - same industry - less risky
- unrelated diversification - no industry experience - more risky
- can enable further growth and spread risk
