ACCA Strategic Professional · Strategic Business Leader · Strategic choices
Calder Foods, a regional bakery chain, plans to sell its existing range of breads to supermarket customers in a neighbouring country it has never served before. No changes to the products are planned. Under Ansoff's matrix, which strategy does this represent?
This is market development. Calder is selling its existing breads, unchanged, into a new geographic market and customer channel. Penetration would stay in current markets, product development would need new products, and diversification would need both new products and new markets.
- AMarket penetration
- BMarket developmentCorrect
- CProduct development
- DDiversification
Explanation
The products are unchanged but the market (a new country and a new customer channel) is new. That is market development. Market penetration would mean selling more existing products in existing markets, and product development requires new products.
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