BMT Ansoff matrix

Question 1

Ansoff matrix

Answer 1

It is a strategic, planning tool that helps mangers choose various product and market growth strategies and asses their risk.

Question 2

Draw a Ansoff Matrix

Answer 2

Question 3

Market penetration

Answer 3

It is the least risky strtagy to achieve growth. It is selling exisiting products to existing customer to existing markets. It encorges more regular use of product, brand loyalty to costumer.

Question 4

Evalutation of market penetration

Answer 4

ADVANTAGES
- safest strategy
- focuses on products and markets that are familiar
- market research expenditure can be minimalised.

DISADVANTAGES
- price wars

Question 5

Market development

Answer 5

Finding new market opportunities for existing products. Repositioning the product by selling to diff costumer profits.

Question 5

Evaluation of Market development

Answer 5

ADVANTAGES
-familiar with product being marketed

DISADVANTAGES
-medium risk
- Succses in one market doesn’t mean success in another market.

Question 6

Product developmetn

Answer 6

Selling new improved products to existing customers/market.

Can be improved by:
- Developing new versions/upgrades of existing successful products
- Redising packages/aesthetic features
-relaunching heritage products at commercial convinenet intervals

• This normally happens after the product life cycle.

Question 7

Diversification

Answer 7

The most risky growth strategy it involves targeting new markets with new products.

RELATED DIVERSIFICATION
business catrosfor new customers within the broader confines of the same industry.
- less risky asit build on the product and market knowledge of business.

UNRELATED DIVERSIFICATION
Growth by selling completely new products in untapped markets.