Chapter 7- Strategy and Implementation and Business Growth

Question 1

What is the ansoff matrix?

Answer 1

Considers a business’s product portfolio from a different point of view to the models such as product life cycle analysis and the boston matrix

A strategic toll used to achieve growth

Question 2

What does the ansoff mix focus on?

Answer 2

outlines the options open to businesses if they wish to grow, with a view to increase profitability and revenue.

They indicate how to manage the development of the product range by looking at options according to products and markets.

Question 3

Four options/strategies a business can use when wishing to grow

Answer 3

1) Market penetration
2) Market development
3) Product development
4) Diversification

Question 4

What is market penetration?

Answer 4

Concentrating on sales of an existing product in an existing market

Question 5

What is market development?

Answer 5

Finding and developing new markets for existing products

Question 6

What is product development?

Answer 6

Developing new products for existing markets

Question 7

What is diversification?

Answer 7

Developing new products for new markets

Question 8

What does market penetration involve?

Answer 8

The business aiming to increase sales within its present market; to be successful a business must be aware of what has made the product a success in the first place

Question 9

Strategies of market penetration?

Answer 9

1) Attracting customers who have not yet become regular users, increasing brand loyalty

2) Attacking competitors sakes, happens in mature markets