In Ansoff’s Growth Matrix, which strategy involves entering new markets with existing products?

• A. Market Penetration
• B. Market Development
• C. Product Development
• D. Diversification

Answer: (B)

The growth path being tested is using existing offerings to reach new markets. Market development fits this description because it involves taking current products into markets you haven’t served before—new countries, new customer segments, or new distribution channels—while the product itself remains unchanged. This leverages the brand and product strengths you already have, but expands reach.

For example, a snack bar company might start selling in a neighboring country with the same bars and branding, rather than creating a new product. This contrasts with market penetration, which would aim to grow sales within your current market using the same products; product development, which would introduce new products to your existing markets; and diversification, which combines new products with new markets.