Ansoff matrix

Question 1

what is the Ansoff matrix?

Answer 1

a strategic planning tool made up of four strategic components: market penetration, market development, product development, and diversification

Question 2

what is market penetration?

Answer 2

selling in an existing markets (low risk)

Question 3

what is market development?

Answer 3

achieving higher sales/market share of existing products in new markets

Question 4

what is product development?

Answer 4

selling new products in existing markets

Question 5

what is diversification?

Answer 5

selling new products in new markets (high risk)

Question 6

what are some advantages of the ansoff matrix?

Answer 6

an easy way to guide discussion, quick and simple to understand, highlights risk and make sure it gets discussed

Question 7

what are some disadvantages of the ansoff matrix?

Answer 7

Fails to show that market development and diversification strategies require a change to every day running of the business, only a theoretical model, accurate predictions are difficult

Question 8

what are some steps a business needs to apply for the Ansoff matrix?

Answer 8

assess current situation, identify potential growth opportunities, evaluate risks/potential returns, priorities growth strategies, develop an implementation plan, and monitor/adapt