Ansoffs matrix Flashcards
what are the 4 growth strategy in ansoffs matrix
market penetration
market development
product development
diversification
description of market penetration
sell more of existing products in existing markets
description of market development
sell existing products in new markets
description of product development
sell new products in existing markets
description of diversification
sell new products in new markets
why choose market penetration
the existing market is growing
strong marketing mix that gives a competitive advantage
existing customers can be encouraged to buy more frequently
why choose market development
existing market is declining
opportunities in new growing markets (overseas)
strong product mix
why choose product development
existing market will buy new products
existing products are out of date
R&D has created an innovative new product
why choose diversification
provides faster growth than other strategys
existing market and products are unlikely to grow
the business has the financial resources to diversify
which part of ansoffs matrix is low risk
market penetration
which parts of ansoffs matrix is medium risk
market development
product development
which part of ansoffs matrix is high risk
diversification
