Ansoff Matrix

Which of the four strategies in the Ansoff Matrix is generally thought to involve the highest risk?

• product development

• market penetration

• market development

• diversification

A significant increase in market share would be evidence of a successful strategy of:

• diversification

• market development

• market penetration

• product development

Attempting to grow sales of existing products in existing markets is known as:

• Diversification

• product development

• market penetration

• market development

Which of the four strategies in the Ansoff Matrix is generally thought to involve the lowest risk?

• Product development

• Market penetration

• Diversification

• Market development

An argument in support of a strategy of diversification is that it:

• spreads risk in a business

• enables a business to focus on what it does best

• ensures higher returns on investments

• allows economics of scale

According to the Ansoff Matrix, a strategy of building customer loyalty and securing market share is:

• product development

• diversification

• market penetration

• market development