What Are The Advantages And Disadvantages Of Ansoff Matrix?

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The advantages are firstly that an ansoff matrix is a simply graphical toll that allows a business or individual to weigh up a complex situation or decision. For example with a complex business decision they would be used to quickly understand the potential for 1 of 4 scenarios.

However a disadvantage is that the ansoff's matrix is highly simplistic and does not factor in the external environment, especially wihtin a business context. For example if a company decided that they would bring their existing product into a new market based upon the results of an ansoffs matrix then they would also need to consider if there is the demand for this product within this market.

Therefore it is clear that ansoff's matrix is a good solid starting point on which to base a decision, however it cannot be used alone to justify the decision that is made.

Hope this helps, A level busines student
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Anonymous answered
One advantage is that,its help the producer to know the kind of product to produce at that time.
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Anonymous answered
Advantage- its easy to get marks in exam if this question comes nd disadvantage it can only b asked for 2 marks!! Haha

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