DECADECA Travel and Tourism Practice Exam

What is the Ansoff product-market expansion grid used for?

1. Plotting financial performance

2. Identifying consumer preferences

3. Assessing market competition

4. Exploring growth opportunities for products and markets

The correct answer is: Exploring growth opportunities for products and markets

The Ansoff product-market expansion grid is a strategic tool used by businesses to explore growth opportunities by considering different combinations of products and markets. It helps organizations evaluate various strategies for growth, including market penetration, market development, product development, and diversification. Each quadrant of the grid represents a distinct path that a company can take to expand its operations, allowing them to strategically assess the risks and benefits associated with each approach. For instance, a company looking to grow might use this grid to decide whether to introduce an existing product to a new market (market development), develop a new product for its current market (product development), or pursue entirely new products in new markets (diversification). The grid aids in formulating marketing and business strategies that align with a company’s resources and objectives, making it invaluable for strategic planning in the travel and tourism industry and beyond.