Unit 8

Question 1

Describe Ansoff’s Matrix

Answer 1

A tool to analyse possible strategic directions via 4 possible strategies
- Market penetration - (existing products, existing markets)
- Market development (Existing products, new markets)
- New product development - (new product, existing market)
- Diversification - (new products, new markets)

Question 2

Describe Porter’s strategies grid

Answer 2

Made to analyse how a business can be strategic in gaining a competitive advantage:
- cost leadership: offering the lowest costs
- differentiation - your product stands out
- differentiation in a niche market
- cost focus