Question

In 2020, Mpumalanga Hotels launched a newly refurbished Mbombela Square aimed at the local economy-class travellers who are looking for comfort and class at an affordable price. This is an example of a ____________ strategy. Select one:

a. vertical integration
b. market development
c. diversification
d. innovation

Answer 1

The example provided represents the market development strategy, where Mpumalanga Hotels targeted a new segment of customers with their newly refurbished Mbombela Square.

Step-by-step explanation:

The example provided in the question, where Mpumalanga Hotels launched a newly refurbished Mbombela Square aimed at the local economy-class travellers who are looking for comfort and class at an affordable price, represents the market development strategy. Market development involves identifying and entering new markets with existing products or services. In this case, Mpumalanga Hotels expanded and targeted a new segment of customers who are looking for affordable comfort and class.