Market development Vs. product development Various factors influence the decision between market development and product

Market development Vs. product development

Various factors influence the decision between market development and product development, including the specific position of the company, the competition, the customers’ needs, and the company’s financial objectives. For example, in market development, the strategy should be aimed toward reaching out to new geographic areas of operation or offering existing products to new customer groups. The first operational strategy that requires consideration of market demands, entry barriers, and profitability levels includes the following. On the other hand, using refers to the process of adapting existing products to the existing markets, and this deserves R&D investment and market insights for changes in customer needs.

I personally suggest market development as a top priority if the company has strong products that already have market demands, but the markets themselves are untapped. For example, going global or segmenting in a newer way could easily catapult revenue. This strategy could be more relevant in the case when competitors threaten commoditization companies’ market share or consumer needs evolve.

In conclusion, the selection devolves to what is achievable according to the company’s resources, experience, and strategic plan. If the decision is to be made based on rationality, then the cost-benefit analysis of both options and t Finally, evaluation of the risk level of both options will provide the basis for an informed decision. I recommend that the CEO focus on market development first because it normally has less risk and higher payback.