Topic 6.2: SWOT Analysis Questions

Define market development.

Why is diversification usually treated as the riskiest of the four Ansoff strategies?

Define market penetration.

State what the Ansoff matrix is used for.

Define product development.

Which growth strategy does Ansoff call diversification?

Define diversification.

A local bakery wants to increase sales of its existing product range in the town it already serves, without changing the product. Identify the Ansoff strategy it is using, with a reason.

Outline the two dimensions used in the Ansoff matrix.

Outline what Porter meant by a business being "stuck in the middle".

Which pair of dimensions does the Ansoff matrix use?

A sportswear firm sells its trainers in its home country. It opens an online store to sell the same trainers to customers in a country where it has never traded. Using the Ansoff matrix, explain the growth strategy the sportswear firm is using.

A mid-sized bakery sells bread and cakes through its own shops. It plans to increase sales by offering subscription delivery to existing customers in the same city. Identify the Ansoff strategy and justify your answer.

A sports drinks company plans to sell its existing drinks in a new country for the first time. Identify the Ansoff strategy and explain your choice.

Harlow Paints sells decorating paint to households. It begins selling the same paint to construction firms for the first time. Which Ansoff strategy is this?

Nordfit runs gyms in one city. It introduces a loyalty price that encourages current members to visit more often and book extra classes. Which Ansoff strategy is this?

Kaveri Dairy sells milk and yoghurt at home. It launches a skincare range in a country where it has never traded. Which Ansoff strategy is this?

Verano Juice sells chilled orange juice in Spain. It begins selling the same bottles in Portugal. Which Ansoff strategy is this?

A sportswear brand sells trainers in Europe. It plans to enter the South Korean market using the same trainer models. Identify the Ansoff strategy and justify your answer.

What is one limitation of choosing a growth strategy from the Ansoff matrix alone?