📝 How to apply Ansoff in exams
Big Idea: Exam questions don't just ask you to describe the matrix — they want you to apply it to a specific business scenario. You must connect the theory to the case study! 🔗
Steps to apply Ansoff
- Step 1: Identify the product — is it existing or new?
- Step 2: Identify the market — is it existing or new?
- Step 3: Place the decision in the correct quadrant
- Step 4: Explain the level of risk involved
- Step 5: Evaluate whether the strategy suits this business
📖 Worked example
A food company currently sells snacks in its home country. It takes over a company that makes the same type of snacks in another country.
- Product = existing (same snacks)
- Market = new (different country)
- Ansoff quadrant = Market development
- Risk = medium — the product is proven but the new market is unfamiliar
- Evaluation: The takeover gives instant access to the new market, reducing risk compared to starting from scratch
Exam tip: Always explain BOTH the knowledge (which quadrant) AND the application (why it fits this specific business).
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⚠️ Limitations of the Ansoff matrix
- Only considers products and markets — ignores other factors like finance, competition, staff
- Oversimplifies — real decisions are rarely neatly in one quadrant
- Doesn't show HOW to implement the strategy
- Assumes risk increases equally — but some diversifications are less risky than others
- Best used alongside other tools (SWOT, STEEPLE, financial analysis)
Ansoff is a great framework, but it's just the starting point — not the whole answer! Use it WITH other analysis tools. 🧰