Business - ANSOFFS MATRIX

Question 1

What are ansoffs four corporate strategies?

Answer 1

Ansoff suggetsted four corporate strategies that a business can use to set its direction for growth and development:

• Market penetration - trying to increase your market share in your existing market using sales promotions, pricing strategies, advertising
• New product development - selling new products in your existing markets
• Market development - selling existing products to new markets, it can be done through repositioning.
• Diversification - selling new products to new markets

Question 2

What is ansoffs matrix?

Answer 2

Ansoffs matrix is a tool for comparing the level of risk involved with the different growth strategies. It helps managers to decide on a direction for strategic growth.

Question 3

What is the advantage of ansoffs matrix?

Answer 3

The advantage of ansoffs matrix is that it doesn’t just lay out potential strategies for growth - it also foces managers to think about the expected risks of moving in a certain direction.

Question 4

What is a disadvantage of ansoffs matrix?

Answer 4

One disadvantage of the matrix is that it fails to show that market development and diversification strategies tend to require significant change in the day-to-day workings or tactics of the business.