choosing strategic direction

Question 1

what are the four points upon anoffs matrix

Answer 1

-market penetration
-market development
-product development
-diversification

Question 2

what is market penetration

Answer 2

-where an existing product is sold in an existing market - this is the safest method a business can use - low risk -mostly used just to increase market share

Question 3

what is product development

Answer 3

product development aims to sell new products into an existing market - involves product dev -innovation

Question 4

what is market development

Answer 4

selling an existing product into a new market e.g. expanding into global markets like McDonalds or china

Question 5

what is diversification

Answer 5

diversification is where it is a new product in a new market - highest risk

Question 6

what are the two main types of competitive advantages

Answer 6

-cost advantage - having lower costs than the competition

-differentiation advantage e- offing a unique product that competition don’t offer

Question 7

what does bowman’s static clock present

Answer 7

bowman’s strategic clock represents the different positioning strategies based upon price and perceived added value