Final answer:
The four quadrant of a product/market expansion grid is a tool used in business strategy to help identify growth opportunities. The quadrants include market penetration, market development, product development, and diversification.
Step-by-step explanation:
The four quadrants of a product/market expansion grid is a tool used in business strategy to help identify growth opportunities. It is divided into four quadrants based on two factors: market attractiveness and business strength.
The four quadrants are:
- Market Penetration: This quadrant represents existing products in existing markets. The goal is to increase market share by attracting more customers or encouraging existing customers to purchase more.
- Market Development: This quadrant involves introducing existing products into new markets. The focus is on expanding the reach of the product to new customer segments or geographic locations.
- Product Development: This quadrant focuses on creating and introducing new products into existing markets. The aim is to offer customers new and improved products that can generate additional revenue.
- Diversification: This quadrant involves introducing new products into new markets. It represents the highest level of risk and requires careful market research and analysis to identify potential opportunities.
The product/market expansion grid helps businesses make strategic decisions regarding their growth and expansion plans.