Lava Scooters Inc.manufactures electric scooters with young women as its target customers.The company manufactures vehicles that have engine displacement ranging from 50 to 100 cubic centimetres.Of late, many customers have been preferring scooters that are more powerful.To satisfy such customers, the company introduces a powerful bike that has 200-cubic centimetres engine displacement.In this scenario, Lava Scooters uses the strategy of:

Question

Quizplus · Accepted Answer

Lava Scooters is introducing a new and more powerful product, which fulfills the demands of its customers who are looking for a higher engine displacement. This strategy is known as product development. The company is not creating a new market or penetrating an existing one. It is not diversifying its product line or intensifying its marketing efforts. Therefore, option B is the best choice.