NAME AND DESCRIBE THE FOUR STRATEGIC ALTERNATIVES IN ANSOFF’S STRAT...

3. Name and describe the four strategic alternatives in Ansoff’s strategic opportunity matrix, which

matches products with markets. For each of the four strategic alternatives, give a specific example of a

firm following that strategy.

ANS:

MARKET PENETRATION - increase market share among existing customers. Kraft Foods using

heavy promotional expenditures in the form of aggressive advertising and cents-off coupons for

Maxwell House coffee.

MARKET DEVELOPMENT - attracting new customers to existing products. McDonald's opening

restaurants in Russia, China, and Italy; colleges and universities expanding to executive development

and continuing education.

PRODUCT DEVELOPMENT - creating new products for current customers. Brooks Brothers has

introduced a line of poplin suits with polyester fibers that move moisture away from the body.

DIVERSIFICATION - introducing new products into new markets. LTV entering the monorail

business; Sony's acquisition of Columbia Pictures; Coca-Cola manufacturing water treatment

equipment.

PTS: 1

REF: 27-28

OBJ: 02-3

TOP: AACSB Communication

KEY: CB&E Model Strategy

MSC: BLOOMS Level V Synthesis