Asked Jan 30, 2020

If a company has $1 million to spend on a new strategy and is considering market development versus product development, what are the determining factors that would be most important to consider? Distinguish the two types of development. 


Expert Answer

Step 1: Market development strategy

A market development strategy is a business strategy where a company introduces a product and its offerings to markets that the company is not serving before. A market development strategy can be implemented through direct investment, joint ventures, exportation licensing and others.

Step 2: Product development strategy

A product development strategy is a business strategy where a firm creates new offerings in the existing markets through product innovation, product line extensions, and product augmentation. This is possible when the firm looks to research and identify innovative and creative product solutions.

Step 3: Situation under which a market development strategy is better
  • There are new channels of distribution available, which are inexpensive and of good quality.
  • When there are new and untapped markets.
  • The organization has the required capital and human resources to implement...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in


Operations Management

Related Operations Management Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: Myers Briggs Type Indicator (MBTI®) is one of the personality tests that is commonly applied to make...

A: The Myers- Briggs Type Indicator sometime MBTI refers to the method which is a very useful tool to u...


Q: Description are fully provided below in detail.

A: Note: Since as per honor code we are authorized to answer one question at a time, so we are answerin...


Q: Plainwell Polymers is going to producing the main dashboard structure for a new car design.  The das...

A: The data of Plainwell polymers are given below:Number of days = 365Daily demanded = (365+110+210) un...


Q: Draft a business plan in small business management

A: Business plan for small business management:Introduction:Example is taken as coffeeshop. Here, the u...


Q: My question is how do I elaborate on a definition of supply chain strategy and secondly, how do I el...

A: Supply chain strategy:It is said to be an iterative process that helps the firm to evaluate the cost...


Q: Given the following historical data, what is the moving-average forecast for period 6 based on the l...

A: Determine the moving-average forecast for Period 6 based on the last three period:


Q: Draw a goods and services spectrum, and determine where to place the following products along the sp...

A: The goods and service spectrum which is used to describe where to place the following products are a...


Q: When Lee Keiko returned from a quick lunch, she scanned her e-mail inbox for the message she had bee...

A: Note: I have answered for first question. Kindly post the remaining questions separately.Analyze the...


Q: Two

A: The formula for EF = Max (EF of all immediate predecessors)Since C is preceded by A and B we find th...