The highest risk strategy of the product/market expansion grid is?Group of answer choicesMarket PentrationDiversificationMarket DevelopmentProduct Development

Break Down the Problem

1. Identify the product/market expansion grid strategies.
2. Determine the level of risk associated with each strategy.

Relevant Concepts

1. Market Penetration: Focuses on increasing sales of existing products in existing markets.
2. Market Development: Involves seeking new markets for existing products.
3. Product Development: Entails developing new products for existing markets.
4. Diversification: Involves introducing new products into new markets, which carries the highest risk due to entering unfamiliar territory.

Analysis and Detail

1. Market Penetration: Lower risk as it targets existing customers.
2. Market Development: Moderate risk by reaching out to new customer segments.
3. Product Development: Moderate risk when creating new products for existing customers.
4. Diversification: This strategy is the riskiest as it involves both new product development and entry into new markets, which requires extensive investment and understanding of unknown factors.

Verify and Summarize

Among the given options, diversification involves the highest level of uncertainty and risk, due to the untested nature of the product and market.

Final Answer

The highest risk strategy of the product/market expansion grid is Diversification.