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Product/Market Expansion Grid
Companies should be looking to the future always. One useful device for recognizing growth opportunities for the future is the product/market expansion grid. The market/ product expansion grid is a portfolio planning tool for recognizing company growth opportunities through the following:
1). Market Penetration-building more sales to existing customers without changing manufacture in any way (instance, adding more stores).
2). Market Development-a schema for company growth by identifying a developing new markets for current company products (instance, geographical and demographic markets).
3). Product Development-a schema for company growth by offering modified or new manufacture to current markets.
4). Diversification-a schema for company growth by beginning up or acquiring businesses outside the company's current markets and products.
This is a practice where one firm sells the similar product at several prices in several markets.
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