Ansoff Matrix

• What is a strategy in business?

  A long-term plan to achieve aims
• What must firms decide as part of their strategy?

  What direction to move and how to achieve it
• How does strategic direction affect a business?

  It determines products and markets operated in
• What is Ansoff's Matrix used for?

  To analyze a business's strategic direction

  
• Who developed Ansoff's Matrix?

  Igor Ansoff
• What is Ansoff described as?

  The father of modern strategic thinking
• What does the Ansoff Matrix help businesses determine?

  Their product and market strategy

  
• What are the four strategies in Ansoff's Matrix?

  1. Market Penetration
  2. Product Development
  3. Market Development
  4. Diversification

  
• What is Market Penetration?

  A strategy to sell existing products in existing markets
• What is the aim of Market Penetration?

  To increase market share
• How can businesses increase market share through Market Penetration?

  By selling more existing products to the same customers
• What type of markets is Market Penetration useful for?

  Stable, predictable markets
• What is an example of a successful Market Penetration strategy?

  Rapid organic growth in the UK
• What is an example of a failed Market Penetration strategy?


  None provided in the material
• What is Product Development?

  A strategy to introduce new products into existing markets
• What are common examples of Product Development strategies?

  Brand extensions and technological innovations
• What is a potential risk of Product Development?

  Failure to meet customer needs
• What is Market Development?

  A strategy to sell existing products into new markets
• What are approaches to Market Development?

  New geographical markets and distribution channels
• What is an example of a successful Market Development strategy?

  Starbucks expansion into China

  
• What is an example of a failed Market Development strategy?

  Tesco Fresh & Easy in the US

  
• What is Diversification?

  A strategy to market new products in new markets
• What is a risk associated with Diversification?

  No direct experience of the product or market
• What are approaches to Diversification?

  Innovation, R&D, and acquisitions
• What are the evaluations for each strategy in Ansoff's Matrix?

  1. Market Penetration: Focus on known markets, less research needed.
  2. Product Development: Emphasizes market research and innovation.
  3. Market Development: Risky, especially in international markets.
  4. Diversification: High risk, spreads overall business risk if successful.

  
• What does the summary of Ansoff's Matrix include?

  Strategies, explanations, successes, and failures
• What should businesses do for each strategy in Ansoff's Matrix?

  Choose successful and unsuccessful examples
• What should be evaluated for successful products in Ansoff's Matrix?

  Future viability and necessary adaptations
• What should be explained for unsuccessful products in Ansoff's Matrix?

  The single biggest reason for failure