Question

(1 point)
russell has recently discovered that his patented organic drain de-clogging solution also works well as a fertilizer for vegetable gardens. russell has also found that several plumbers want to buy his product, but only those who also grow their own tomato patches. in this scenario, what is russell’s best growth strategy for his business?
○ market penetration
○ product expansion
○ market expansion
○ unrelated diversification

Explanation:

• Market penetration involves selling more of an existing product to existing customers. But here, the product (fertilizer) is being sold to a new customer group (plumbers).
• Product expansion would mean introducing a new product. But the core product (the drain - clogging solution which also works as a fertilizer) is the same.
• Market expansion is about entering new geographical or customer segment markets. Here, the customer segment (from vegetable - gardeners to plumbers) is new. But the product is being used in a different way (as a drain - clogging solution for plumbers).
• Unrelated diversification is when a business enters a completely new and unrelated industry. But the product has a dual use (fertilizer and drain - clogging solution), so it's not completely unrelated.

Answer:

unrelated diversification