Consider Figure 2-5 above.A family owns a gelato business in a small town square next to a park,which is a favorite place for parents and children to stop on their way home from work to relax or school to play.However,the business owner is barely making ends meet.The adults who stop by are always complimenting him on his unusual gelato flavor selections.He decides to experiment by packaging his special spices into small packets that can be used at home as flavorings for dinner drinks.Sales of the spices soar and profits begin to rise.This is an example of a __________ strategy that would be found in quadrant __________.

Question

Quizplus · Accepted Answer

This is an example of a product development strategy because the owner is creating a new product (spice packets) based on the strengths of their existing product (unique gelato flavors) in order to increase sales and profits. This fits within quadrant B because the business is focusing on developing new products for existing markets.

Consider Figure 2-5 Above