ansoffs matrix

Question 1

what does it allow business owners to consider

Answer 1

level of investment in new and existing products (finance)
exploitation of different markets (is it required?)
growth strategy for business
level of risk the business is willing to take

Question 2

market penetration

Answer 2

existing products and markets

Question 3

market development

Answer 3

existing products in new markets

Question 4

product development

Answer 4

new products in existing markets

Question 5

diversification

Answer 5

new products in new markets

Question 6

elements of market penetration

Answer 6

how to increase sales without changing
increasing loyalty
loyalty cards
increased advertising
extend PLC
low risk
low cost

Question 7

elements of market development

Answer 7

expanding customer base
maximize sales and profit
geographical location could lead to cultural differences and language barriers
more risk as product may not suit new market
high cost e.g new shops

Question 8

elements of product development

Answer 8

low risk as already know market
helps max sales
e.g Cadbury new bar
some are unsuccessful, dependent on research and advertising

Question 9

elements of diversification

Answer 9

high risk and cost
often takeover to reduce risk
can gain the staff with expertise regarding market