HeadStart, an automobile manufacturer, has found that sales of its RockStart SUV has fallen over the last few years. Consequently, HeadStart introduces a new, revamped version of the SUV with additional features such as a latest GPS technology device and padded dashboards. The company stops production of the old model in order to invest all of its resources into marketing this new model in its present market. In this scenario, which of the following growth strategies is HeadStart employing?
A) Market development
B) Market penetration
C) Product development
D) Product penetration

Question

Quizplus · Accepted Answer

HeadStart is employing the product development growth strategy as they are introducing a new, revamped version of the SUV with additional features, indicating a focus on developing products to appeal to existing customers. Additionally, they have stopped production of the old model to focus solely on marketing the new model, which is characteristic of product development.

HeadStart, an Automobile Manufacturer, Has Found That Sales of Its