Which two growth options are being evaluated by ABC using the Ansoff matrix?

• A. Product development and Market development
• B. Market development and Diversification
• C. Product development and Diversification
• D. Market penetration and Product development

Answer: (A)

Ansoff matrix helps a business think about growth by pairing whether the product is new or existing with whether the market is new or existing. The two growth options ABC is evaluating are product development and market development. This means ABC is considering either creating a new product for its current customers (new product, existing market) or using its existing product to enter a new market (existing product, new market). These options are chosen to pursue growth while changing only one dimension (either the product or the market), whereas market penetration would push more sales of the same product in the same market, and diversification would introduce a new product into a new market.