What is the aim of Option 1 in the Ansoff matrix?

• A. Launching a range of premium B2B interior design products using recycled materials
• B. Exporting room-temperature metal recovery technology to neighboring Country Y
• C. Entering consumer markets with new plastic products
• D. Reducing production costs through outsourcing

Answer: (A)

Product development is about offering a new product to an existing market to grow sales. Launching a range of premium B2B interior design products made from recycled materials fits this idea because the market (B2B interior design customers) stays the same, but the product offering is new. Introducing a new product line to current customers, especially with a sustainability angle, is exactly how you expand within the same market.

Exporting an existing technology to a neighboring country would be about entering a new geographic market with the same product, which is market development. Entering consumer markets with a new plastic product involves a new product in a new market, which is diversification. Reducing production costs through outsourcing is a cost-improvement move, not a growth strategy in the Ansoff matrix.