Ansoff Matrix

Question 1

4 quadrants of Ansoff Matrix

Answer 1

Market penetration - existing market, existing product

Market development - new market, existing product

Product Development - existing market, new product

Diversification - new market, new product

Question 2

The strategy gets progressively more risky the ________ you get

Answer 2

newer

Question 3

Market penetration

Answer 3

The least risky strategy which aims to achieve growth by strategizing how to sell more of an existing product to their existing consumer base.

Question 4

Market Development

Answer 4

Strategy to achieve growth by finding and entering new markets with existing products. This may mean repositioning the product so it is sold to different customer profiles or finding complementary locations (M&S food teaming up with gas station companies to provide express retail outlets)

Question 5

Product development

Answer 5

Strategy to grow that involves selling new or improved products to an existing consumer base. Can be as simple as redesigning the packaging of a product.

Question 6

Diversification

Answer 6

The most risky growth strategy which involves targeting new customers with entirely new or redeveloped products.

Question 7

Why is Ansoff Matrix used by businesses?

Answer 7

It is used to understand the level of risk associated with a chosen growth strategy.