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.
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
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Answer
Ansoff's matrix includes four growth strategies: Market Penetration, Market Development, Product Development, and Diversification. For Taco Bell, the most relevant strategy is Market Development.
Step 2
Application: Taco Bell in Brazil
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Answer
Taco Bell is entering the Brazilian market by introducing its Tex-Mex dishes, which are already popular in the USA. This demonstrates Market Development as the company seeks to expand its reach into new geographical areas.
Step 3
Analysis: Risks and Considerations
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Answer
While Taco Bell aims to leverage its established menu in a new market, this approach carries potential risks. Entering a new market can be more challenging than simply increasing sales in existing ones, as the company must adapt to local tastes and preferences while navigating unfamiliar market dynamics.
