Ansoff’s Matrix Flashcards
1
Q
Ansoff’s Matrix
A
Ansoff’s matrix is a strategic tool to help businesses achieve growth by developing possible strategies. 
2
Q
Ansoff’s Matrix example
A
3
Q
Market Penetration, Product Development, Market Development, Diversity
A
MP = Existing products in existing market PD = New or modified products in existing market MD = Existing products in new market D = New product for new market
4
Q
Advantages of Ansoff’s Matrix
A
Helps analyse risk associated with each strategy which helps a business decide which strategy to use and how to prepare for the risks.
Helps business observe all alternatives so that they can choose the right strategy to increase sales and profit. 
5
Q
Disadvantages of Ansoff’s Matrix
A
It doesn’t factor in competitors.
Difficult to predict the real impact, of implementing the strategies, on company’s sales and profit because external factors can never be accurately estimated. 
