Podcast
Questions and Answers
According to Ansoff's Matrix, what is the riskiest growth strategy a business can pursue, and why?
According to Ansoff's Matrix, what is the riskiest growth strategy a business can pursue, and why?
Diversification is the riskiest strategy because it involves introducing new products into entirely new markets where the business has little to no experience.
Explain how Domino's adapted its market development strategy when expanding into countries like India.
Explain how Domino's adapted its market development strategy when expanding into countries like India.
Domino's adapted its products to meet local tastes (e.g. in India) while keeping their model of customer service and prompt delivery. This refined existing product fits into the new market.
What is 'market penetration' according to Ansoff's Matrix, and how does it relate to McDonald's strategy in Japan?
What is 'market penetration' according to Ansoff's Matrix, and how does it relate to McDonald's strategy in Japan?
Market penetration is where a business adapts its products for markets in which it already operates. McDonald's launching the Teriyaki McBurger® in Japan is specifically targetting an existing market.
Describe a situation where a 'product development' strategy would be most appropriate for a business.
Describe a situation where a 'product development' strategy would be most appropriate for a business.
How can Ansoff's Matrix be applied to inform decisions around a ‘glocalization’ marketing strategy?
How can Ansoff's Matrix be applied to inform decisions around a ‘glocalization’ marketing strategy?
Explain how increasing the 'distance' from the top left-hand corner of the matrix leads to greater risk for a business.
Explain how increasing the 'distance' from the top left-hand corner of the matrix leads to greater risk for a business.
What considerations beyond just taste and needs are necessary when implementing a market development strategy?
What considerations beyond just taste and needs are necessary when implementing a market development strategy?
Give an example of a company that employs a 'diversification' strategy and describe some of its interests.
Give an example of a company that employs a 'diversification' strategy and describe some of its interests.
How does market development differ from market penetration, according to Ansoff's Matrix?
How does market development differ from market penetration, according to Ansoff's Matrix?
How can Ansoff's matrix be used to determine the level of risk in global marketing decisions?
How can Ansoff's matrix be used to determine the level of risk in global marketing decisions?
Flashcards
Market Penetration
Market Penetration
Adapting products for markets in which a business already operates.
Market Development
Market Development
Marketing existing products in new markets, requiring understanding of local habits and tastes.
Product Development
Product Development
Promoting new or modified products in existing markets, suitable for products with short life cycles.
Diversification
Diversification
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Ansoff's Matrix
Ansoff's Matrix
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Study Notes
- Ansoff's Matrix is a strategic tool for business growth, applicable to global markets and marketing strategy.
- Multinational brands like Starbucks, Ford, and McDonald's use it for glocalisation.
Ansoff Matrix Strategies
- The matrix has four strategies that present a business from its existing products and consumers.
- Risk increases with greater extension from existing products and consumers in the matrix (top left-hand corner).
- Global marketing focuses on introducing new or existing products into new markets with national and cultural differences.
Market Penetration
- Adapting products for existing markets.
- McDonald's operates in Japan and launched the Teriyaki McBurger there (entering a new market).
- This signifies market penetration (entering a market).
Market Development
- Marketing existing products in new markets, which relies on understanding local habits, tastes, and needs.
- Slight modifications are often needed to suit the new market, like language or labelling.
- Domino's adapted its product in India to meet local tastes and is an example of a market-development strategy, where they adapted to glocal tastes.
Product Development
- Promoting new or modified products in existing markets.
- Appropriate for businesses with short product life cycles, e.g., clothes and fashion accessories.
Diversification
- Developing new products for entirely new markets.
- It is the riskiest strategy due to unfamiliarity with the markets.
- The Tata Group is a diversified business examples with interests in steel, car making, chemicals, beverages, perfume, financial services, hotels, and consultancy services.
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