Choosing strategic direction (definitions)

Question 1

Market penetration

Answer 1

Strategy focused on increasing sales of existing products or services in current markets
Through pricing adjustments, marketing campaigns or expanding distribution channels

Question 2

Market development

Answer 2

Strategy aimed at expanding into new market segments or geographical areas with existing products or services, targeting new customer groups or market segments

Question 3

New product development

Answer 3

Process of creating and introducing innovative products or services to meet evolving customer needs or to enter new markets
Involving research, design, testing and launch phases

Question 4

Diversification

Answer 4

Strategy involving expansion of a company’s business activities into new products, services and markets that are unrelated to its current offerings aimed to spread risk and capture new opportunities

Question 5

Competitive advantage

Answer 5

Unique strengths, capabilities or resources that enable a company to out perform its competitors and achieve superior performance in the marketplace, leading to increased market share or profitability