Which option best describes ABC's market development option?

• A. Exporting room-temperature metal recovery technology to Country Y.
• B. Building a local plant for standard concrete in Country Y.
• C. Licensing a plastics recycling process to firms in Country Z.
• D. Merging with a competitor to expand recycling capacity.

Answer: (A)

Market development means using an existing product to enter a new market. Exporting the room-temperature metal recovery technology to Country Y does exactly that: the company is selling its current technology in a country where it hasn’t operated before. This expands ABC’s geographic reach without creating a new product or altering the offering.

The other options involve different strategic moves. Building a local plant in Country Y would still enter a new market but is more about establishing production capacity in that market, which shifts the emphasis to investment and production scale. Licensing the plastics recycling process to firms in Country Z is another form of market entry, but via licensing rather than direct sales, which changes the mode of entry. Merging with a competitor to expand capacity focuses on increasing supply or capabilities rather than entering a new market.