Unit 8 Flashcards
Ansoff’s Matrix
Planning tool to help decide on a strategy to best achieve growth
How many strategies does Ansoff’s matrix suggest
4
What are the two axis on Ansoff’s matrix
Product and Market
Which strategy is existing product and existing market
Market penetration
Which strategy is existing product and new market
Market development
Which strategy is new product and existing market
Product development
Which strategy is new product and new market
Diversification
Which strategy carries the most risk
Diversification (unrelated being the highest risk)
Which strategy has the lowest risk
Market penetration
How can market development be achieved
Selling to new segments or geographical locations
Which internal factors influence the choice of strategy on Ansoff’s matrix
Finances available
Corporate objectives
Shareholders attitude to risk
Which external factors influence the choice of strategy on Ansoff’s matrix
Laws
Changes in technology and trends
Competitors actions
Barriers to entry
Porters generics strategies
A business should adopt one of three strategies in relation to where it positions itself in the market
What does Porter’s generic strategies suggest businesses can compete on
Price
Differentiation (uniqueness/added value)
Focusing on a niche
What does differentiation involve
Strong USP
Innovation
Brand loyalty
