Week3 - Ansoffs Matrix

Question 1

Ansoffs Matrix 4 strategies

Answer 1

1. Market Penetration
2. Product Development
3. Market Development
4. Diversification

Question 2

What is Market Penetration and methods?

Answer 2

• Existing product, existing market.
• Growth through marketing to persuade new customers.
• Loyalty Schemes
• Cheapest and lowest resource

Question 3

What is Product Development and how risky?

Answer 3

• New products, existing products.
• Higher risk than MP (cost of R+D, market research & analysis.

Question 4

What is Market Development, how risky, and example?

Answer 4

• Same Products, new market.
• Higher risk than MP as high cost, analysis, new market.
• Tesco moving to US.

Question 5

What is Diversification, how risky, how to lower risk, and example?

Answer 5

• New market, new product.
• Can lower risk by expanding into products, markets that are similar to existing strategies.
• High risk, high reward.
• Apple developing iPhone SE 2020 as a cheaper alternative to other iPhones in order to enter emerging markets in Brazil and India that cannot afford expensive iPhones.

Question 6

Drawbacks of Ansoffs Matrix

Answer 6

• Doesn’t take into account external factors (PESTLE, SWOT).
• Oversimplifies very complex thing.