Question

How can a business use Ansoff's Matrix to give it a competitive advantage? A) By diversifying its product offerings B) By narrowing its target market C) By staying within its current market and product range D) By ignoring Ansoff's Matrix as it has no value for business strategy

Answer 1

Businesses can use Ansoff's Matrix to diversify their product offerings, enter new markets, and gain a competitive advantage.

Step-by-step explanation:

Businesses can use Ansoff's Matrix to give them a competitive advantage by diversifying their product offerings, which is option A. Ansoff's Matrix provides four growth strategies that businesses can follow to expand their market and increase their competitive advantage. These strategies include:

1. Market Penetration: This strategy focuses on increasing sales of existing products in existing markets. It involves tactics such as increasing marketing efforts, reducing prices, or improving customer loyalty.
2. Market Development: This strategy involves entering new markets with existing products. Businesses can achieve this by targeting new customer segments or expanding to new geographic regions.
3. Product Development: This strategy involves developing new products to sell in existing markets. It allows businesses to meet the changing needs and preferences of their customers.
4. Diversification: This strategy involves entering new markets with new products. It allows businesses to reduce risks associated with relying on a single product or market.

By implementing these strategies, businesses can expand their customer base, increase sales, and gain a competitive advantage in the market.