ITPEC FE Morning April 2020 Question 67
ITPEC FE Morning April 2020 — Question 67 of 80
Ansoff Growth Matrix — identify the strategy for new products in new markets.
The Ansoff Matrix maps growth strategies along two dimensions: products (existing vs. new) and markets (existing vs. new).
| Existing Products | New Products | |
|---|---|---|
| Existing Markets | Market Penetration | Product Development |
| New Markets | Market Development | Diversification |
New products + new markets = Diversification.
Why not others:
- (b) Market development — takes existing products into new markets
- (c) Market penetration — sells existing products in existing markets (increase market share)
- (d) Product development — creates new products for existing markets
Key rule: Diversification is the only Ansoff strategy where both the product and the market are new.
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