Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Market Development
B
Product Development
C
Diversification
D
Market Penetration
Understanding the Answer
Let's break down why this is correct
Answer
This situation falls under the strategic decision‑making category of **strategic choice** or **strategic direction**, where a firm must decide between expanding into a new market and strengthening its current product line. The company must weigh the potential growth and new customer base of entering a new market against the benefits of deepening expertise and improving quality in its existing offerings. For example, a laptop manufacturer might choose to launch a new gaming laptop line (market expansion) or invest in better battery life for its current models (product improvement). The decision involves evaluating resources, risks, and long‑term goals to determine which path best supports the company’s overall strategy.
Detailed Explanation
Choosing a new market means the company wants to sell its current products to different customers. Other options are incorrect because The idea of making a new or improved product is about staying in the same group of buyers; Diversification means the firm starts offering something completely new, like a phone company selling shoes.
Key Concepts
Strategic Decision-Making
Market Development
Product Development
Topic
Strategic Decision-Making
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
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