This is an amazing video. I don't study business but Ansoff is covered in my A level technology and design course and this has really helped me out. I have a mock exam tomorrow and I have been able to understand and hour of work in 13 minutes and 50 seconds. This video needs more recognition.
I kind of understand the Ansoff matrix, but what twists my brain is choosing the right method to achieve my goal. How would you go about doing this? Is there another strategy to help decide which method to use in the Ansoff Matrix?
so good, thank you so much! I take CIE AL business and unit 6, strategic management was the toughest to grasp conceptually. Really, thank you for this.
Really great vids, so helpful! Could you do videos on advice for the Edexcel pre-release booklet (on health and fitness), and any predictions you think might come up with the Edexcel new spec? Thanks so much, you're so engaging to watch!
don't businesses use diversification as a means to reduce risk? if this is correct then why is diversification the most risky choice? can you please help me by expanding on that.
Successful diversification spreads risk as the business is active in more markets, so if there is a decline in one industry then the business is insulated from that decline. However, diversification is risky a) because of the costs involved (the business will need to invest in R&D into new product ranges and market research into new markets) and b) because the business will not have the same level of knowledge and experience in new markets that it has built up in its existing markets. Diversification is a popular strategy, but the consequences of failure are higher than with the other strategies in the matrix, hence why it is viewed as the most risky (although it is also the strategy with the greatest potential for growth).
Are theories like ansoff's matrix applicable for paper 1? I mentioned market penetration within one of my answers but because it is theme 3 for edexcel I am unsure.
I think it would completely depend on the context in which you referred to the theory. In a 100 mark exam. I wouldn't worry too much about it though - just focus on papers 2 & 3
