Question

RedInk, a company that manufactures office furniture, is based in Bodonia. It is looking to sell its current products in other countries as well. The company identifies the country of Soleria as a good option because the cultures and tastes of consumers in the two countries are similar. This is an example of a strategy for _____________.

a) market penetration
b) market development
c) downsizing
d) diversification
e) product development

Answer 1

Answer: Market development

Explanation: In simple words, it refers to a strategy under which an organisation tries to identify and develop a new customer base for their current products.

In the given case, Red ink is trying to advantage of the similar culture in Soleria so that they can sell their existing product in a new market.

Hence from the above we can conclude that this is an example of market development.