Check Your Understanding $/$ Product$-$Market Expansion

Strategies

Unlimited tries

Identify product$-$market expansion strategy is described in each scenario. The scenarios describe the strategy of the well$-$known White Oasis Hotel chain. The chain currently operates $15$ midscale and upscale brands, with properties spread out relatively evenly across North America and Western Europe.

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$\backslash$table$[[$Market Penetration,$\backslash$table$[[$Product$],[$Development$]],$Diversification,$\backslash$table$[[$Market$],[$Development$]]],[\backslash$table$[[$The chain antici$-],[$pates strong de$-],[$mand for economy$],[$hotels$.$ The chain$],[$does not currently$],[$operate any econo$-],[$my properties, but$],[$plans to open $50],[$economy proper$-],[$ties in North$],[$America over the$],[$next $10$ years.$]],\backslash$table$[[$Over the next $10],[$years$,$ the antici$-],[$pates strong con$-],[$sumer demand$],[$and plans to open$],[100$ new properties$],[$in North America$],[$and Western$],[$Europe to capital$-],[$ize on this$],[$opportunity$.]],\backslash$table$[[$The chain antici$-],[$pates a decline in$],[$the demand for$],[$upscale hotels in$],[$Western Europe,$],[$but an increase in$],[$demand in the$],[$Eastern Europe. As$],[$a result, it plans to$],[$open $50$ new up$-],[$scale properties in$],[$Eastern Europe in$],[$the next $10$ years.$]],\backslash$table$[[$The chain antici$-],[$pates strong de$-],[$mand for luxury$],[$cruises in$],[$Southeast Asia.$],[$The chain plans to$],[$purchase four lux$-],[$ury cruise ships$],[$and deploy them in$],[$Southeast Asia$],[$over the next $10],[$years$.]]]]$