ANSOFF’S MATRIX

Question 1

What is strategic direction

Answer 1

Strategic direction = The plan to achieve an organisation’s corporate objectives.

Question 2

What is Ansoff’s matrix

Answer 2

A method of analysing the risk associated with different market positioning strategies

Igor Ansoff - concerned with the inherent risk of different marketing strategies

Essentially tw0 factors to consider - The market (customers) and the product

Question 3

What is market penetration

Answer 3

Market penetration - Trying to get previous customers to come and buy more of the same products.

Question 4

What is market development

Answer 4

Market development - Taking existing products and selling them in a new market. It could be targeting a different age group, opening a new location etc

Question 5

What is product development

Answer 5

Product development - Selling existing customers a new product - An example of this would be Mcdonald’s, they tend to release a new limited edition burger every month

Question 6

What is diversification

Answer 6

Diversification - This occurs when you sell new products in a new market - For example when Mcdonald’s opened locations in India, as it’s a predominantly hindu country, the cow is seen as sacred, so Mcdonalds couldn’t sell beef burgers, instead they tailored their products to their liking. And Mccafes which is like Mcdonalds is Mcdonalds trying to get into the same market as Starbucks

Question 7

Look at the graph at the bottom of the page

Answer 7

https://docs.google.com/document/d/1HGCqgGjEqXazkhWTGdBq6d7A1DEXKwUy7ZwOTaiscVw/edit