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Flip to reveal answersRank Ansoff strategies by risk (lowest to highest)
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All 25 Flashcards — The Ansoff matrix
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Question
Rank Ansoff strategies by risk (lowest to highest)
Answer
Penetration (lowest) → Development (medium) → Product development (medium) → Diversification (highest).
💡 Hint
P → D → PD → Div
Question
Ansoff = 2×2 grid: products (existing/new) vs ___
Answer
Markets (existing/new).
💡 Hint
Markets
Question
Buying a competitor in same market = Ansoff ___
Answer
Market penetration — same products, same market, increasing share.
💡 Hint
Penetration
Question
Market penetration = ___ product + ___ market
Answer
Existing product + existing market — sell more to current customers. Lowest risk.
💡 Hint
Existing + existing
Question
What is the Ansoff matrix?
Answer
A 2×2 grid mapping four growth strategies based on existing/new products and existing/new markets.
💡 Hint
2x2: products vs markets
Question
Market development = ___ product + ___ market
Answer
Existing product + new market — take current products to new customers/locations. Medium risk.
💡 Hint
Existing + new
Question
The two axes of the Ansoff matrix?
Answer
Products (existing/new) and Markets (existing/new).
💡 Hint
Products vs Markets
Question
Why is diversification the highest risk?
Answer
Both the product AND market are unfamiliar — everything is new and uncertain.
💡 Hint
Both new + uncertain
Question
Buying a company in a new country = Ansoff ___
Answer
Market development — existing products, new geographic market.
💡 Hint
Development
Question
Four strategies: penetration, development, ___, ___
Answer
Product development, diversification.
💡 Hint
PD + Div
Question
Ansoff is like a ___ for growth
Answer
Sat-nav — showing different routes with different risk levels.
💡 Hint
Sat-nav
Question
Buying a company making different products for your customers = ___
Answer
Product development — new product, existing market.
💡 Hint
Product development
Question
Why is penetration the lowest risk?
Answer
You know the product AND the market — familiar territory.
💡 Hint
Both familiar
Question
Product development = ___ product + ___ market
Answer
New product + existing market — create new products for current customers. Medium risk.
💡 Hint
New + existing
Question
Risk: penetration (lowest) → diversification (___).
Answer
Highest.
💡 Hint
Highest
Question
Diversification = ___ product + ___ market
Answer
New product + new market — everything unfamiliar. Highest risk.
💡 Hint
New + new
Question
Used to evaluate ___ strategies including ___
Answer
Growth; takeovers.
💡 Hint
Growth + takeovers
Question
The Ansoff matrix helps businesses decide ___
Answer
How to grow — which combination of products and markets to pursue.
💡 Hint
How to grow
Question
Risk increases as you move away from ___
Answer
What you know — the further from existing products/markets, the more uncertain.
💡 Hint
What you know
Question
Buying a company in a totally different industry = ___
Answer
Diversification — new product AND new market.
💡 Hint
Diversification
Question
For takeover questions: identify the ___ and explain ___
Answer
Quadrant; WHY the takeover fits that category.
💡 Hint
Quadrant + why
Question
Quick: Existing product + new market = ___
Answer
Market development.
💡 Hint
Development
Question
Name the four Ansoff strategies
Answer
Market penetration, market development, product development, diversification.
💡 Hint
P-D-P-D
Question
Methods for market penetration?
Answer
Increase advertising, lower prices, loyalty schemes — aim to increase market share.
💡 Hint
Ads, price cuts, loyalty
Question
Diversification can be very rewarding IF ___, but many ___
Answer
Successful; fail — it's high risk, high reward.
💡 Hint
Reward if success, many fail
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Topic 6.2 hub
Ansoff matrix
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