CA Intermediate · Financial Management and Strategic Management · Strategic Choices
Ravi Pharma, which currently sells generic medicines in India, plans to sell the same generic medicines to new customers in African countries. Simultaneously it considers developing an entirely new range of nutraceuticals for its existing Indian customers. According to Ansoff's product-market matrix, which pair correctly describes these two moves in order?
The first move is market development and the second is product development. Selling existing generics to new African markets is an existing product in a new market, while launching nutraceuticals to current Indian customers is a new product in an existing market.
- AMarket penetration; product development
- BMarket development; product developmentCorrect
- CProduct development; diversification
- DMarket development; diversification
Explanation
Existing product sold in a new market is market development. A new product for existing customers is product development. Diversification needs both a new product and a new market, and penetration uses the existing product in the existing market, so neither fits.
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