ANSOFF’S MATRIX - PRODUCT DEVELOPMENT Flashcards
What are some examples of strategies for product development
Product - updates i.e new versions/ changing colour, new products, R & D and innovation
Price - releasing a cheaper, basic version
Promotion - informative advertising to highlight the benefits of the product
Place - use existing distribution channels
Why do businesses do product development
Replace products at the end of their lifecycle
Maintain demand and customer loyalty
Make advances on/ keep up with competition
In response to customer demand for complementary products
Create competitive advantage through patents and intellectual property
What is the value of product development
Maintain customer loyalty
Create new revenue streams
Create patents and valuable intellectual property - boost market capitalisation
What are drawback of product development
Can be very expensive, may require extensive investment in research and development (R&D)
Risk of failure
Risk of copy cat items
