Ansoff Matrix

Question 1

ansoff matrix

Answer 1

an analytical tool that helps managers to choose and devise various product and market growth strategies.

Question 2

market penetration

Answer 2

-involves business choosing to focus selling existing products to existing markets

• It focuses on using strategies to increase the usage rate of existing customers.

pros
-low risk, business focusses on things that are familiar to them

cons
-competitors are likely to retaliate to any business trying to take away their customers or market share –> lead to price wars

Question 3

Product development

Answer 3

Growth strategy that involves selling new products in existing markets. hence this strategy carries a medium level of risk

Question 4

market development

Answer 4

involves selling existing products in new markets.
moderate risk

pros
-business is familiar with their product that is being marketed

cons
-the success in one market does not guarantee the success in other markets
-

Question 5

Diversification

Answer 5

new product and new market
high risk

related diversification
- occurs when a business caters for new customers within the broader confines of the same industry.

unrelated diversification
-occurs when a business is selling new products for untapped markets.