ITPEC FE Morning October 2022 Question 66
ITPEC FE Morning October 2022 — Question 66 of 80
The Ansoff Matrix maps four growth strategies across two dimensions: product (existing vs. new) and market (existing vs. new).
| Strategy | Product | Market |
|---|---|---|
| Market Penetration | Existing | Existing |
| Market Development | Existing | New |
| Product Development | New | Existing |
| Diversification | New | New |
The question states "existing product in an existing market" → Market Penetration.
Why not others:
- (a) Diversification = new product + new market — the highest-risk strategy
- (b) Market development = existing product + new market — entering new customer segments or geographies
- (d) Product development = new product + existing market — innovating for current customers
Key rule: Market Penetration = same product, same market — just sell more of it.
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