Which strategy is medium-risk and involves selling existing products in new markets?

Which strategy is medium-risk and involves selling existing products in new markets?

• A. Market Development
• B. Product Development
• C. Merger
• D. Joint Venture

Answer: (B)

Expanding into new markets with existing products is a Market Development move. It’s medium risk because you’re leveraging products that are already proven to work, but you’re entering a market you don’t know well—facing unfamiliar customer needs, distribution channels, and local competition. This makes the move safer than creating new products for existing markets (Product Development), since you’re not investing in new product development, yet riskier than staying in your current market with the same offerings. An example would be a company selling its current product line in a new country or region, rather than launching new products there. Merger or joint venture involves partnerships or combinations with other firms, which is a different growth path and carries a different risk and resource profile.

Expanding into new markets with existing products is a Market Development move. It’s medium risk because you’re leveraging products that are already proven to work, but you’re entering a market you don’t know well—facing unfamiliar customer needs, distribution channels, and local competition. This makes the move safer than creating new products for existing markets (Product Development), since you’re not investing in new product development, yet riskier than staying in your current market with the same offerings. An example would be a company selling its current product line in a new country or region, rather than launching new products there. Merger or joint venture involves partnerships or combinations with other firms, which is a different growth path and carries a different risk and resource profile.