CMA Intermediate · Operations Management and Strategic Management · Formulation and Implementation of Strategy
Which Ansoff growth strategy involves selling new products to new markets?
Selling new products in new markets is diversification in Ansoff's matrix. It is the riskiest option because the firm lacks experience in both the product and the market, unlike penetration, market development or product development.
- AMarket penetration
- BMarket development
- CProduct development
- DDiversificationCorrect
Explanation
Ansoff's matrix has four cells: existing product-existing market is penetration; existing product-new market is market development; new product-existing market is product development; new product-new market is diversification, which carries the highest risk.
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