Figure 2-5
-Consider Figure 2-5 above.A small family owns gelato business in the town's favorite place where parents and children stop on their way home from work to relax or school to play.However,the business owner is barely making ends meet.He experiments by purchasing a case of large take-home containers so customers can not only stop on the way home from school or work but also enjoy the gelato after dinner at home.Profits begin to rise.This is an example of a __________ strategy that would be found in quadrant __________.

Question

Quizplus · Accepted Answer

The strategy used by the gelato business owner is market penetration - increasing sales of existing products in existing markets. This is because the business owner is selling the same product (gelato) to the same market (parents and children who visit the location), but is expanding the ways in which customers can purchase and enjoy the product (by offering take-home containers). The quadrant where this strategy would be found is "A" - market penetration is focused on existing products and markets, which are in the current business environment.

Figure 2-5 -Consider Figure 2-5 Above.A Small Family Owns Gelato Business in Business