Which growth strategy in the Ansoff Growth Matrix involves entering new markets with existing products?

Which growth strategy in the Ansoff Growth Matrix involves entering new markets with existing products?

• A. Market penetration
• B. Product development
• C. Market development
• D. Diversification

Answer: (C)

Expanding into new markets with existing products means using the same offering to reach customers you haven’t served before, such as different geographic regions or new demographic segments. In the Ansoff Growth Matrix this is market development. The idea is to leverage what you already have—your product’s appeal, your brand, and your distribution channels—while growing by entering new markets, so you don’t have to create a new product to achieve growth. This path is distinct from market penetration, which aims to increase sales within the current market with the same product; product development, which involves introducing new products to existing customers; and diversification, which combines new products with new markets.

Expanding into new markets with existing products means using the same offering to reach customers you haven’t served before, such as different geographic regions or new demographic segments. In the Ansoff Growth Matrix this is market development. The idea is to leverage what you already have—your product’s appeal, your brand, and your distribution channels—while growing by entering new markets, so you don’t have to create a new product to achieve growth.

This path is distinct from market penetration, which aims to increase sales within the current market with the same product; product development, which involves introducing new products to existing customers; and diversification, which combines new products with new markets.