Ansoff's Matrix Flashcards
1
Q
What is it used to decide?
A
To decide on a growth strategy
2
Q
What does it compare?
A
The level of risk involved with different strategies
3
Q
What is the advantage of it?
A
It forces managers to think about the expected risks of moving in a direction
4
Q
What is one disadvantage of it?
A
It fails to show that market development and diversification require SIGNIFICANT change in day-to-day working.
5
Q
Which is the least risky?
A
Market penetration
6
Q
Which are the medium risk ones?
A
Product development and Market development
7
Q
Which are the riskiest ones?
A
Diversification
8
Q
What are some critiques about it?
A
Too simplified
9
Q
Explain the entire layout of the matrix
A
2x2 square. Top left market penetration Top right product development Bottom left market development Bottom right Diversification Y-axis New, Existing (bottom to top) X-axis Existing, new (left to right) Closer to bottom right = Increasing risk Closer to top left = Decreasing risk
10
Q
What is a real life example of market development?
A
KFC, expanded into UK as first American fast food chain
