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UNIT 8 chapter 9 (ANSOFF MATRIX (Market penetration (Existing products in…
UNIT 8 chapter 9
ANSOFF MATRIX
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Four main strategic directions: Market penetration, market development, new product development and diversification
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Market development
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The business will need to understand the conditions in the new market to make sure they meet the customers needs
This is risky, e.g Tesco moving to the US
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Diversification
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However may reduce risk as the business is less vulnerable to changes in the market as they wont be reliant on just one product
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Strategic choices= Involve deciding the direction in which a business should move and the methods by which it should pursue this plan
Strategic direction= Sets out which markets a business will compete in and what products it will offer
With internal and external change, managers must continuously review the businesses position and where it should be headed, so the strategic direction will change