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Short summary of ansoff matrix for a2 business students
Terms in this set (11)
A well known model to use when making strategic decisions about marketing, and specifically over strategies for growth.
Benefits of using Ansoff
Options can actually be compared in terms of the degree of risk involved. Also helps firm to consider alternative strategies.
Limitations of using Ansoff Matrix
Does not mean risk should be avoided. Other methods such as return on investment still need to be used alongside it to make full comparison.
Firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share.
Firm seeks growth by targeting its existing products to new market segments. Developing new products can be expensive.
Firms develops new products targeted to its existing market segments. Trust and brand awareness already exists
Firm grows by diversifying into new businesses by developing new products for new markets. Carries the greatest risk.
Netflix expanding to many different countries
Example of market development
Customers using the UBER app again and again / Supermarket loyalty point schemes
Example of market penetration
Tesla deciding to make tequila
Example of diversification
Apple launching a new iPhone/Apple Watch
Example of product development
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