CA Intermediate · Financial Management and Strategic Management · Strategic Choices
Sundaram Tyres sells tyres in India. It now plans to sell its existing tyre range in new geographic markets such as East Africa, without changing the product. Using Ansoff's product-market growth matrix, which strategy is this?
This is market development. Sundaram Tyres is taking an existing product into new geographic markets. Under Ansoff's matrix, existing product with new market is market development, unlike penetration, product development or diversification.
- AMarket penetration
- BMarket developmentCorrect
- CProduct development
- DDiversification
Explanation
The product is existing and the market is new, which is market development under Ansoff's matrix. Market penetration uses existing product and existing market, product development uses a new product in existing markets, and diversification involves both new.
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