ansoffs matrix

Question 1

uses of Ansoff’s matrix

Answer 1

• identify all your current product/services and their markets
• consider future options for expansions
• consider opportunities, associated costs, benefits and risks
• risks involved in strategic decisions

Question 2

benefits of Ansoff’s matrix

Answer 2

• simple to use and understand
• observe all possible alternatives
• help to analyse risks

Question 3

drawbacks of Ansoff’s matrix

Answer 3

• needs to be done alongside a SWOT and PESTLE analysis
• ignores actions of competitors
• large PLCs will need much more analysis

Question 4

define diversification

Answer 4

• new product or services sold in new markets

Question 5

benefits of diversification

Answer 5

• potentially higher returns
• new invention/product = exciting for workforce
• new market reduces the risk of inactive existing market
• transform size + opportunities for business

Question 6

drawbacks of diversification

Answer 6

• very high cost
• the cost of development
• lack of experience