Question

Ansoff's matrix is useful for what?and explain about 2 following companies, 1. Joanie wants to open a new store location 100 miles from her existing shop. Which of these strategies is she considering?2.Tom has decided to expand his store hours and offer discounted pricing on his existing line of pet supplies. Which strategy is Tom considering?(10 points)

Answer 1

Ansoffs product market growth matrix study the different combination of markets and products. The market and products can be divided as follows.

Market- Existing Market and New Market

Products- Existing Products and New Prooducts

	Existing Products	New produts
Existing Market	Market Penetration	Product Development
New Market	Market Development	Diversification

From the above matrix it is very much clear that market penetration is the position where the business focuses on selling existing products into existing markets. This is a growth strategy.

Under market development business seek to sell its existing products into new markets.

Product development is focus in introducing new products into existing markets.

Diversification is the strategy where a business introduce new products into new markets. This is a strategy by starting up or acquiring business outside the company's current markets and products.

1. Joanie wants to open a new store location 100 miles from her existing shop. This is a Market Development strategy where Mr. Joanie introduce the existing products into new market.

2. Tom has decided to expand his store hours and offer discounted pricing on his existing line of pet supplies. This is a Market Penetration strategy, where Mr. Tom extending his operating hours and offer more discount to customers. But the produts and markets remain the same.