BUSINESS STRATEGY

$21.00

see the attached

Description

Ansoff’s matrix refers to a four-quadrant graph that is useful to companies deciding on the most appropriate method to encourage growth via marketing current or new products to current or new customers. The tool is used to illustrate varying levels of risks with the lowest risk as the decision to market more of a company’s existing products to existing markets whereas the highest risk being the decision to market new product to new markets (Oliver, 2010). In particular, this tool is vital in strategic planning for firms seeking to maximize output and revenue. It assists marketers to weigh the different threats related to increase in output, new product development, as well as expanding to new markets (De Wit & Meyer, 2010). Using this matrix, companies can scope out opportunities whilst alleviating risk. The Y axis is labelled new markets and existing markets while the X axis is labelled current products and new markets (Oliver, 2010).