- 6 Marks
Question
Ansoff argued that when a firm is planning its growth strategies, there should be a link between its current products and markets and its future products and markets. The management of Agaba Limited, an Aba-based company, has anchored its strategies for product-market development on Ansoff’s growth vector matrix.
Required:
Distinguish between market development strategy and product development strategy adopted by Agaba Limited. (6 Marks)
Answer
- Market Development Strategy: This strategy involves identifying and developing new market segments for existing products. It focuses on expanding into new geographical areas or new demographics. Agaba Limited could employ this by selling its current products in different regions or to new customer groups, expanding its reach.
- Product Development Strategy: This strategy is centered on introducing new products to existing markets. Agaba Limited could develop innovative or enhanced products aimed at the same customer base to meet evolving preferences or to gain a competitive edge in the market.
- Tags: Corporate Strategy, Growth Strategy, Market Development, Product Development
- Level: Level 2
- Topic: Corporate Strategy Formulation
- Series: MAY 2018
- Uploader: Kofi