3.8: strategic direction

• What is the first strategy in the Ansoff Matrix?

  Market Penetration
• What does the Market Penetration strategy focus on?

  Increasing market share for existing products
• Which method can be used in Market Penetration?

  Increasing promotional efforts
• What is a potential limitation of Market Penetration?

  Limited growth potential if the market is saturated
• What is the second strategy in the Ansoff Matrix?

  Product Development
• What does Product Development involve?

  Developing new or improved products
• Which method is associated with Product Development?

  Investing in research and development
• What is a risk associated with Product Development?

  Higher risk due to R&D costs
• What is the third strategy in the Ansoff Matrix?

  Market Development
• What does Market Development focus on?

  Entering new markets with existing products
• Which method can be used in Market Development?

  Geographical expansion
• What is a risk associated with Market Development?

  Moderate risk due to unfamiliarity with new markets
• What is the fourth strategy in the Ansoff Matrix?

  Diversification
• What does Diversification involve?

  Developing new products for new markets
• Which method is associated with Diversification?

  Launching entirely new product lines
• What is a risk associated with Diversification?

  High risk due to unfamiliar markets
• What are the four strategies in the Ansoff Matrix?

  • Market Penetration
  • Product Development
  • Market Development
  • Diversification
• What are the evaluations for each strategy in the Ansoff Matrix?

  1. Market Penetration: Low risk, limited growth potential
  2. Product Development: Higher risk, competitive advantage possible
  3. Market Development: Moderate risk, requires market research
  4. Diversification: High risk, potentially high rewards
• What is the purpose of the Ansoff Matrix?

  To evaluate options for business growth
• How does the Ansoff Matrix categorize growth strategies?

  By products and markets
• What is Ansoff's Matrix used for?

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

  • Market Penetration
  • Market Development
  • New Product Development
  • Diversification
• What is market penetration in Ansoff's Matrix?

  Increasing sales in an existing market
• What does market development involve?

  Selling existing products to new markets
• What is new product development?

  Creating new products for existing customers
• What does diversification involve?

  Selling new products in new markets
• What are the methods for market penetration?

  • Loyalty schemes (e.g., Tesco Clubcard)
  • Promotions
  • Advertising
• What is the value of Ansoff's Matrix?

  Helps analyze current position and growth opportunities
• What are key terms related to Ansoff's Matrix?

  • Strategic Direction
  • Market Penetration
  • Market Development
  • New Product Development
  • Diversification
• What are the lesson objectives of Porter’s Strategies?

  How businesses compete in price and benefits
• What is Porter’s Strategic Matrix used for?

  Gaining a competitive advantage
• What are the four strategies in Porter’s Strategic Matrix?

  • Cost Leadership
  • Differentiation
  • Cost Focus
  • Differentiation Focus
• What is the cost leadership strategy?

  Being the lowest-cost producer in an industry
• What does the differentiation strategy focus on?

  Making a product unique and premium priced
• What is the cost focus strategy?

  Targets a niche market while maintaining low costs
• What does the differentiation focus strategy target?

  Niche market with premium, unique products
• What is the value of Porter’s Strategic Matrix?

  Helps define competitive position
• What does being "stuck in the middle" refer to?

  Avoiding clear competitive positioning
• What influences strategic positioning?

  • SWOT Analysis
  • PESTLE Factors
• What does SWOT Analysis focus on?

  • Strengths & Weaknesses (internal)
  • Opportunities & Threats (external)