Ansoff's Matrix

Question 1

Ansoff’s Matrix

Answer 1

compares level of risk in different directions of strategic growth

Question 2

Ansoff’s Matrix- Market Penetration

Answer 2

• least risky
• existing products to existing markets
• little investment needed as information is already there
• helps maintain or secure dominance in the market
• pricing stategies
• advertising
• personal selling
• promotions

Question 3

Ansoff’s Matrix- Market Development

Answer 3

• existing products to new market
• aim at new geographical markets i.e international
• new product dimensions or packaging i.e new distribution channels or different pricing strategies to attract a new market segment

Question 4

Ansoff’s Matrix- Product Development

Answer 4

• new products to existing markets
• focused on research & development and innovation
• detailed insight into customer needs
• being first into the market

Question 5

Ansoff’s Matrix- Diversification

Answer 5

• riskiest strategy
• new product to new market
• little or no experience in the market
• requires a lot of investment into marketing and operations
• usually obtained through acquiring a business already operating in the new market (takeover/merger)

Question 6

Ansoff’s Matrix- Evaluation

Answer 6

+considers risk
+presentable to shareholders/stakeholders
+can allow consideration for business’ aims and objectives
-doesn’t consider overall change to everyday running of the business
-excludes external factors
-accurate predictions can be difficult to make
-can conflict with shareholder/stakeholder interests