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Explain how one of Ansoff's generic strategies might be applied to Taco Bell's decision to enter the Brazilian market - Edexcel - A-Level Business - Question 2 - 2022 - Paper 1
Question 2
Explain how one of Ansoff's generic strategies might be applied to Taco Bell's decision to enter the Brazilian market. American fast-food business, Taco Bell, has j... show full transcript
Worked Solution & Example Answer:Explain how one of Ansoff's generic strategies might be applied to Taco Bell's decision to enter the Brazilian market - Edexcel - A-Level Business - Question 2 - 2022 - Paper 1
Step 1
Knowledge of Ansoff’s strategies
Answer
Ansoff’s matrix includes four strategies: Market Development, Market Penetration, Product Development, and Diversification. In this context, Taco Bell is leveraging Market Development as it is entering a new geographical market (Brazil) with its existing product line.
Step 2
Step 3
Analysis of Market Development Risk
Answer
Even though Taco Bell's strategy is grounded in Market Development, it carries risks. Entering a new market is inherently more challenging than simply penetrating an established one. The unfamiliarity with local consumer preferences and competitive landscape may present risks that Taco Bell will need to navigate carefully.