Question

What are the four basic growth strategies according to the Strategic Opportunity Matrix?

1) Market penetration, market development, product development, and diversification
2) Market research, market analysis, product testing, and market expansion
3) Market segmentation, market targeting, product positioning, and market differentiation
4) Market saturation, market consolidation, product innovation, and market disruption

Answer 1

The four basic growth strategies in the Strategic Opportunity Matrix are Market Penetration, Market Development, Product Development, and Diversification. These strategies are central to business growth and expansion.

Step-by-step explanation:

Strategic Opportunity Matrix

The four basic growth strategies according to the Strategic Opportunity Matrix are: Market Penetration, Market Development, Product Development, and Diversification. These are pivotal components in strategic planning for businesses looking to expand or improve their market position.

• Market Penetration: This strategy focuses on increasing sales of existing products to the current market segments without changing the product.
• Market Development: This involves entering new markets with current products to reach new customers or demographic segments.
• Product Development: It encompasses the creation of new or improved products for existing markets to drive additional sales.
• Diversification: This is the most risky strategy as it requires introducing new products to new markets.

These strategies are essential for companies seeking growth, expansion, and to maintain a competitive edge in both domestic and global markets.