Question

To increase sales of its low-fat pizzas in its established market, Dietizza is offering discounts on all its pizzas. According to Ansoff's strategic opportunity matrix, Dietizza has adopted the ________ alternative.
a) market penetration
b) product diversification
c) divestment
d) market development

Answer 1

Answer:

According to Ansoff's strategic opportunity matrix, Dietizza has adopted the ________ alternative.

a) market penetration

Explanation:

According to Ansoff's strategic opportunity matrix, Dietizza has adopted the ________ alternative.

a) market penetration

Market penetration means entering the market by increasing sales.

It can be done in a number of ways such as offering discounts, attracting customers through promotion etc.

Decreasing price for a special event which would be again a discount.

Ansoff's strategic opportunity matrix has four strategies.

a) market penetration

b) product diversification

c) product development

d) market development

Answer 2

Answer: a) market penetration

Explanation:

Market penetration is the technique adopted for selling products and services in an existing market so as to take advantage of the market share.

Market penetration strategies includes increased promotion, penetrating pricing, market development, increased distribution channels, price adjustments etc. Market penetration strategy makes it easier for a product to gain attention in an existing market.

Market penetration = number of customers size ÷ target market × 100.

Market penetration is one of the 4 Ansoff's matrix strategic planning tools