Ansoff Matrix

Question 1

What is ansoff matrix

Answer 1

Planning model which helps determine the market and product strategy

Question 2

What is strategy is the lowest risk

Answer 2

• Market penetration

Question 3

What is the aim of market penetration

Answer 3

• Sell existing products in existing markets
• To increase market share

Question 4

What are the advantages of market penetration

Answer 4

• Will not need market research
• Can exploit insights on what customers want / need

Question 5

What are the disadvantages of market penetration

Answer 5

• May not allow business to achieve growth objectives

Question 6

What is product development

Answer 6

• New products in existing markets

Question 7

Adv of product dev

Answer 7

• Firm already has strong insight on customer base

Question 8

Disadvantage of product development

Answer 8

• Firm may not been first to the market or first to create the producgt

Question 9

What is market development

Answer 9

• Existing products in new markets

Question 10

What are the advantages of market development

Answer 10

• New revenue streams as they are different markets
• Spreads risk, less dependency on one region

Question 11

What are the disadvantages of market development

Answer 11

• May impose legal and cultural clashes
• Higher costs as a result of adapting the product to align with different markets

Question 12

What is diversification

Answer 12

• Introducing new products into new markets

Question 13

What are the advantages of diversification

Answer 13

• First mover advantage
• Increased financial stability, not dependent on one market

Question 14

What are the disadvantages of diversification

Answer 14

• High risk, lack of familiarity with market may be catastrophic
• Resource intensive