Which low-risk growth strategy focuses on increasing sales of existing products in existing markets?

• A. Franchise
• B. Merger
• C. Market Penetration
• D. Joint Venture

Answer: (C)

Growing by selling more of what you already have to customers in markets you already serve is market penetration. This approach sticks with existing products and existing markets, so there’s no need to develop new offerings or enter unfamiliar territory, making it the lowest-risk option. It often involves tactics like price promotions, increased advertising, or ways to boost usage among current customers. In contrast, franchising expands by licensing the business model to others (adding partners and new locations), a merger combines two firms (with integration challenges), or a joint venture creates a new venture with another company—each introducing greater complexity and risk than simply increasing sales of existing products in existing markets. Hence, market penetration is the best fit.