IB Business Management - BMT - Ansoff Matrix Quiz

The Ansoff Matrix is primarily used to help businesses:

• Measure financial performance

• Identify growth strategies

• Manage employee relations

• Develop production techniques

Which of the following is not one of the four strategies in the Ansoff Matrix?

• Market penetration

• Product development

• Cost leadership

• Market development

Market penetration focuses on:

• Selling new products to new markets

• Increasing sales of existing products in existing markets

• Developing new products for existing customers

• Entering new markets with new products

Product development involves:

• Expanding into new geographical areas

• Offering new or improved products to existing markets

• Targeting new customer segments with existing products

• Diversifying into unrelated business areas

Which Ansoff strategy carries the highest level of risk?

• Market penetration

• Product development

• Market development

• Diversification

A local café introduces vegan desserts to attract existing customers. This is an example of:

• Market development

• Market penetration

• Product development

• Diversification

When Starbucks opens stores in a new country, it is pursuing:

• Product development

• Market penetration

• Market development

• Diversification

Apple launching a new version of the iPhone aimed at current customers demonstrates:

• Product development

• Market development

• Market penetration

• Diversification

A shoe company starts selling its existing products online to reach new regions. This represents:

• Market development

• Product development

• Market penetration

• Diversification

One advantage of market penetration is:

• It allows entry into a new market with minimal cost

• It has lower risk as the firm knows the market well

• It requires little competition

• It involves innovation in product design