CA Intermediate · Financial Management and Strategic Management · Strategic Choices
Kaveri Textiles has a well-known cotton shirt brand and now launches the same shirts in the Middle East using its existing brand and product with little change. In the Ansoff product-market matrix, this is:
This is market development under the Ansoff matrix. The company sells an existing product, cotton shirts, in a new market, the Middle East. Penetration would stay in current markets, product development would need a new product, and diversification would change both product and market.
- AMarket penetration
- BMarket developmentCorrect
- CProduct development
- DDiversification
Explanation
The product is existing and the market (Middle East) is new, which is market development. Market penetration would sell more of the existing product in existing markets. Product development needs a new product for existing markets, and diversification needs both to be new.
Did you get it right without looking?
One question tells you little. A timed set on Strategic Choices shows your real accuracy, how long you take and where you lose marks.
More Strategic Choices questions
- Two Indian pharmaceutical companies, one strong in research and the other strong in distribution, form a separate jointly owned company to d…
- A diversified Indian group has a business unit making feature phones. Its market share is low relative to the leader, the market is growing …
- Nilgiri Tea Estates has a large share of a mature, slowly growing tea market and has no scope for further expansion. It decides to sell a lo…
- Two Indian pharmaceutical firms, Arogya Labs and Vitalis Pharma, agree to jointly set up a new company to develop and market a vaccine, shar…
- Under Michael Porter's generic strategies, Zenith Mobiles sells smartphones with unique design and exclusive features at a premium price to …
- A Pune-based packaged snack company sells only in Maharashtra. It decides to launch its existing range of snacks in Gujarat and Karnataka wi…