Ansoff Matrix

Question 1

Ansoff matrix

Answer 1

Question 2

What for - what to determine-

Answer 2

Growth
Competitive advantage
Determine
- level of investment in existing and new products
- extrapolation of different markets
- growth strategy
- level of risk willing to accept

Question 3

Market penetration

Answer 3

Existing market existing product - ways of growth include:
- increase brand loyalty- use less substitutes - adopt loyalty scheme, reward card
- encourage customers to use the product more regularly , or more of their products
- lowest risk
-lowest investment
-Benefit from manufacturing eos
-will have a good understanding of product

Question 4

Product development

Answer 4

New product in existing market
- to catch up to trends, products lifecycle ends
- gain reputation for continuous change and new releases - customers don’t want to miss out
- stay ahead of competition
Dis
- needs a lot of rd
Heavy investment in promotion needed

Question 5

Market development

Answer 5

Exiting Product in new market
- entering new markets
- less competition/more
- may benefit form less tax ,
Dis
- approaches like language, culture, understanding need to change
-diff trends
-product may not meet international laws

Question 6

Diversification

Answer 6

New market new product
- firm can spread risk- increase saftey if in mukltiple markets
Dis
- will take firm out of its area expertise - risk
- need a lot of capital - bad if small firm- not network links
- barriers of entry