T45 - Theories of corporate strategy Flashcards
1
Q
Ansoff’s Matrix
A
A strategic tool illustrating new and current products in new and current markets
1
Q
Corporate strategy
A
Long-term plans and policies developed to meet a company’s arims
2
Q
Benefits of Ansoff’s Matrix
A
- Helps assess risk of different growth strategies, improving decision-making
- Helps find growth opportunities for a competitive advantage
3
Q
Drawbacks of Ansoff’s Matrix
A
- Very simplistic, requiring use of other tools (SWOT, PESTLE)
- Time/resources needed to make it, could be used on other things
3
Q
Market penetration
A
- Existing product, existing market
- Includes improving customer service to boost brand loyalty/image
4
Q
Product development
A
- New product, existing market
- Done when one product is near end of its life cycle to maximise revenue
- Includes any modification to a product
5
Q
Market development
A
- Existing product, new market
- Eg. introducing product in a new country
- Risky because of different cultures/tastes
6
Q
Diversification
A
- New product, new market
- Reduces reliance on one product/market, spreading risk
- High risk as they’re not experts compared to established firms in that market
7
Q
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8
Q
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