In the Ansoff Matrix, which growth strategy corresponds to existing product and new market?

• A. Market Development
• B. Market Penetration
• C. Product Development
• D. Diversification

Answer: (A)

The growth path being tested is market development: expanding the reach of an existing product into a new market. In the Ansoff Matrix, this strategy uses the current offering but targets new customers, new geographic areas, or different segments, aiming to grow by entering markets where the product isn’t yet sold. The appeal is leveraging what you already know about the product’s appeal and supply chain while pushing into unfamiliar demand. For example, taking a product sold domestically and selling it abroad, or focusing on a new demographic with the same product. This differs from market penetration (same market, same product, aiming for more share), product development (new product in the same market), and diversification (new product in a new market). So the match for existing product in a new market is market development.