Strategic focus and Expansion models

Question 1

what are the things part of ansoff matrix

Answer 1

market penetration
market development
product development
diversification

Question 2

product development

Answer 2

develop related or unrelated products your customers value; product line extension

Question 3

product development benefit

Answer 3

build on customer knowledge and brand equity
distribution strategies and product complementary/bundling

Question 4

product development challenge

Answer 4

cannibalization
give up production efficiency
must know how to develop new product

Question 5

what is cannibalization

Answer 5

rather then generating new sales, customers switch which product they buy.
adding costs but no new customers which is bad

Question 6

product development tactics

Answer 6

extend product
repackage existing products
create bundles of complementary products that add value to eachother

Question 7

product development diamond E questions

Answer 7

Can I leverage existing brand and/or distribution?
Can my facilities manage or do I have to build new ones?
Can I produce & sell at a profitable scale?
How much new product expertise will I need?

Question 8

product development porters relation

Answer 8

if the products are not product line extensions but completely new and complementary, you are entering a new industry:
Will customers be willing to switch to my new product?
Rivalry: aggression?
Barriers to entry for this new industry?

Question 9

market penetration

Answer 9

Sell more of existing product to existing target market = greater market share and/or greater purchase frequency

Question 10

why do market penetration

Answer 10

build on what you have and know
no change
economies of scale in production and selling
do more of same=low cost per unit

Question 11

market penetration challenges

Answer 11

competitor reaction
winning customers

Question 12

market penetration tactics

Answer 12

Cut prices
Increase advertising, loyalty schemes
Increase distribution channels
Volume incentives
Buy a competitor

Question 13

market penetration diamond e questions

Answer 13

Capabilities: Can I persuade customers to consume more of my product?
Resources: Do I have to use new distribution channels? Should I? Can I?
Resources: Do I have the production capacity to meet the increased demand?

Question 14

market penetration porters questions

Answer 14

Buyers: Propensity to switch? Lock in/switching costs? Brand loyalty?
Rivalry: Fragmented vs concentrated, growing vs declining, aggressive vs passive competitor - How much share do I already have? Can it grow?

Question 15

market development

Answer 15

Selling what you already produce to new target markets (market segments) or new geographic markets

Question 16

why do market development

Answer 16

Capitalize on production capabilities
economies of scale
pursue less contested or larger market; diversification of customer base

Question 17

market development challenge

Answer 17

customer access and awareness

Question 18

market development tactics

Answer 18

Create awareness in new market – pitch benefits to new customers
Expand geographically

Question 19

market development diamond e questions

Answer 19

Resources: Will this affect brand image? Should I use a different brand name?
Capabilities: Will the product need any adjustments? Can I make them?
Do I have the resources and capabilities to go international?

Question 20

market development porters questions

Answer 20

Entry barriers: Can I access the distribution channels to reach this new market?
Are the customers accessible? Will they switch?
Rivalry: fragmentation, aggression, growth? Differentiation – are there market segments that are under-served?

Question 21

diversification

Answer 21

chasing new customers with new products; creating new businesses
concentric/horizontal
vertical
conglomerate

Question 22

concentric/horizontal

Answer 22

related products/services
similar market

Question 23

vertical

Answer 23

moving up or down supply chain

Question 24

conglomerate

Answer 24

unrelated industries/products
greatest risk

Question 25

diversification benefit

Answer 25

diversify business portfolio by building new business
capitalize on existing capabilities in higher growth areas

Question 26

diversification challenge

Answer 26

many activities and capabilities must be created or changed = high risk of failure

Question 27

diversification tactics

Answer 27

Acquire other business
Use joint ventures and alliances

Question 28

diversification diamond e questions

Answer 28

What new capabilities and resources will I need?
Can I build or buy them?
How much will I have to change operations? HR? structure?

Question 29

diversification porters questions

Answer 29

Can I access the distribution channels to /enter reach this new market?
Are the customers accessible? Will they switch?
Rivalry: fragmentation, aggression, industry growth?
Other barriers to entry?
Can I access the needed suppliers?

Question 30

what do you need to do for each quadrant

Answer 30

understand your:
company
customer
competition
product

Question 31

what are the 4 questions to ask when deciding to go international

Answer 31

can we? - diamond e internal
should we? - diamond e external
where? - PEST, porters
how? - strategy