EXISTING
NEW
EXISTING MARKETS
NEW MARKETS
Market Penetration
Existing products in existing markets
Risk Level
Low
Investment
Low
Product Development
New products in existing markets
Risk Level
Medium
Investment
Medium
Market Development
Existing products in new markets
Risk Level
Medium
Investment
Medium
Diversification
New products in new markets
Risk Level
High
Investment
High
| Strategy | Market Focus | Product Focus | Risk Level | Capital Required | Likelihood of Success |
|---|---|---|---|---|---|
| Market Penetration | Existing (deeper) | Existing (current) | Low | Low | Very High (85-95%) |
| Product Development | Existing (current) | New (innovation) | Medium | Medium-High | High (60-75%) |
| Market Development | New (expansion) | Existing (proven) | Medium | Medium | High (60-75%) |
| Diversification | New (unfamiliar) | New (unproven) | High | Very High | Low (30-50%) |
🎯 For Entering a NEW Market:
Market Development offers the best balance of risk and success probability. You're using proven products (reducing product risk) while expanding into new geographic or demographic markets (manageable market risk). Success rate: 60-75%.