CS Professional · Strategic Management and Corporate Finance · Strategic Analysis and Planning
Under Ansoff's product-market matrix, a company selling its existing tea brand through new export markets is following which strategy?
This is market development. Ansoff defines it as selling existing products in new markets, such as export markets for an existing tea brand. Penetration uses existing markets, product development uses new products, and diversification changes both product and market.
- AMarket developmentCorrect
- BMarket penetration
- CProduct development
- DDiversification
Explanation
Ansoff's market development means selling existing products in new markets. Penetration is more sales of existing products in existing markets. Product development is new products for existing markets, and diversification is new products in new markets. Here the product is unchanged but the markets are new.
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