Question

XtraTorque Inc. is a leading engine oil manufacturer in the United States. The company manufactures oil that can withstand a broader range of temperature than any other engine oil brands available in the market. The company plans to expand its business into the Russian market because its product can maintain fluidity even at low temperatures. Which of the following organizational strategies should XtraTorque Inc. adopt?

A) Diversification strategy
B) Market differentiation strategy
C) Market development strategy
D) Market penetration strategy

Answer 1

C) Market development strategy

Step-by-step explanation:

Market development strategy defines that it is a marketing technique in which an company tries to promote an existing product to a new customer segment.

According to the given situation the company who is the head producer of engine oil in the U.S. Here the company produces oil which can resist a wider temperature range other than any brands of engine oil which is available in the marketplace. Now, the company wants to extend their business into the new market place that is Russian market, as its product can maintain fluidity even at low temperature so this indicates that the company adopting the market development strategy.