Ansoffs matrix

• What is the model introduced in the video?

  The Ansoff Matrix
• Why is the Ansoff Matrix popular in business courses?

  It is easy to understand and apply
• What does the Ansoff Matrix help businesses determine?

  The right growth strategy
• What are the two dimensions of the Ansoff Matrix?

  Products and markets
• What happens as you move from the top left to the bottom right of the Ansoff Matrix?

  Increased degrees of risk
• What are the four options in the Ansoff Matrix?

  1. Market Penetration
  2. Product Development
  3. Market Development
  4. Diversification
• What is Market Penetration in the Ansoff Matrix?

  Selling existing products to existing markets
• What is the goal of a Market Penetration strategy?

  To maximize market share
• How can a business increase its market share through Market Penetration?

  By opening new locations
• Why is Market Penetration considered the lowest risk strategy?

  It targets known markets and customers
• What is Product Development in the Ansoff Matrix?

  Introducing new products to existing markets
• What is essential for successful Product Development?

  Market research and understanding customer needs
• What is Market Development in the Ansoff Matrix?

  Selling existing products to new markets
• What is a key strategy in Market Development?

  Expanding into international markets
• What is a potential risk of Market Development?

  Misunderstanding the target market's needs
• What is Diversification in the Ansoff Matrix?

  Selling new products in new markets
• Why is Diversification considered the riskiest strategy?

  It involves unknown products and markets
• What is a common reason for diversification failures?

  Not understanding new market needs
• What does the Ansoff Matrix suggest about risk as you move down the grid?

  Risk increases from top left to bottom right
• What are the key considerations for each strategy in the Ansoff Matrix?

  • Market Penetration: Maximize market share
  • Product Development: Innovate for existing customers
  • Market Development: Expand to new customer bases
  • Diversification: Enter new markets with new products