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
When a firm looks to sell its goods in a place it hasn't sold before, it is expanding its reach. Other options are incorrect because The mistake is thinking it is about creating a new product; The misconception is that it is about branching into unrelated products.
Key Concepts
Strategic Decision-Making
Market Development
Product Development
Topic
Strategic Decision-Making
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
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Question 10A small tech startup is facing declining sales and is considering whether to pivot their product line or invest in marketing their current offerings. Which strategic decision-making principle should they prioritize to ensure they choose the best course of action?
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