1
Q
What is the Ansoff Matrix?
A
- a strategic planning tool used by businesses to analyse and plan their growth strategies
2
Q
What is Market penetration (AO1)?
A
- growth strategy where a business aims to sell existing products into existing markets
3
Q
What is Market Development(AO1)?
A
- growth strategy where the business seeks to sell its existing products into a new market
4
Q
What is Product development(AO1)?
A
- growth strategy in where a business aims to introduce new products into existing markets
5
Q
What is Diversification (AO1)?
A
- growth strategy where a business markets new products in new markets
6
Q
AO2 Market Penetration ?
A
- maintain or increase market share of current products
- through competitive pricing strategies, advertising, sales promotion
- introducing loyalty schemes
7
Q
AO 2 Market Development ?
A
- new geographical markets
- new product dimensions(packaging)
- new distribution channels
- different pricing policies to attract customers
8
Q
AO2 Product Development?
A
- suitable when a business needs products that need to be differentiated to stay competitive
- research & development and innovation
- being first to market
- detailed insights into customers needs
9
Q
AO2 Diversification?
A
- more risk strategy
- diversification can be highly rewarding
- business needs a clear idea about what it expects to gain from strategy
