Ansoff Matrix

Question 1

What is the Ansoff Matrix?

Answer 1

• a strategic planning tool used by businesses to analyse and plan their growth strategies

Question 2

What is Market penetration (AO1)?

Answer 2

• growth strategy where a business aims to sell existing products into existing markets

Question 3

What is Market Development(AO1)?

Answer 3

• growth strategy where the business seeks to sell its existing products into a new market

Question 4

What is Product development(AO1)?

Answer 4

• growth strategy in where a business aims to introduce new products into existing markets

Question 5

What is Diversification (AO1)?

Answer 5

• growth strategy where a business markets new products in new markets

Question 6

AO2 Market Penetration ?

Answer 6

• maintain or increase market share of current products
• through competitive pricing strategies, advertising, sales promotion
• introducing loyalty schemes

Question 7

AO 2 Market Development ?

Answer 7

• new geographical markets
• new product dimensions(packaging)
• new distribution channels
• different pricing policies to attract customers

Question 8

AO2 Product Development?

Answer 8

• 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

Question 9

AO2 Diversification?

Answer 9

• more risk strategy
• diversification can be highly rewarding
• business needs a clear idea about what it expects to gain from strategy