Ansoffs matrix ✔️

Question 1

Explain the purpose of Ansoff’s Matrix

Answer 1

It is to help businesses make informed decisions about their growth strategy by considering the level of risk involved in each of the four strategies.

Question 2

Evaluate the level of risk for a business and its stakeholders for each Quadrant of Ansoff’s Matrix

Answer 2

• Market penetration: least risky, risk of saturation in the market due to increased competition
• Market development: moderate level of risk, ay present challenges such as differences in customer preferences, competition, and cultural differences.
• Product development: higher risk, the business is introducing a new product, which may not be well received by the market or may face technical challenge
• Diversification: the riskiest out of the 4, he business may have limited information about the new market, and the new product may not be well received.

Question 3

Assess the usefulness of Ansoff’s matrix when making a business decision

Answer 3

T he Ansoff Matrix helps businesses determine the best course of action to achieve their growth objectives by considering the risks and potential rewards of each strategy. In short, the Ansoff Matrix is a valuable tool for businesses to make informed decisions about their growth and expand their business.

Question 4

Market penetration

Answer 4

focusing on selling existing products in existing markets, through increased marketing and sales efforts.

Question 5

Market Development

Answer 5

expanding into new markets with existing products.

Question 6

Product Development

Answer 6

introducing new products into existing markets.

Question 7

Diversification

Answer 7

entering new markets with new products.