Question

To establish a McDonald's outlet in Maldives

- Explain new product development using Ansoff's Matrix (if possible pls include a diagram)

- Explain the usefulness of this technique for the McDonalds with examples or reasons

Answer 1

1. Ansoffs Matrix is also called product/market expansion grid is a tool used to analyse and plan their strategies for growth. The matrix shows four strategy to be used to help firm grow and also analyse the risk associated with each strategy

The four strategies of ansoff Matrix are:

    1.   Market penetration : It focus on increasing sales of existing products to an existing market

     2. Product Development : It focus on introducing new products to an existing market.

     3.   Market Development : It focus on entering a new market using existing product.

     4,   Diversification : It focus on entering a new market with the introduction of a new product.

of the four strategies market penetration is the least risky and Diversification is the most riskiest strategy.

While Mcdonalds entry in to maldives, they should clearly identify these strategy .

Ansoffs Matrix diagram is attached below :