Final answer:
The product/market expansion grid is a strategic tool used by businesses to identify growth opportunities. It consists of four strategies for growth: market penetration, market development, product development, and diversification.
Step-by-step explanation:
The product/market expansion grid is a strategic tool used by businesses to identify growth opportunities. It is often represented graphically in a production possibility frontier, which is a curve that shows the maximum level of production that can be achieved given the available resources and technology.
The grid consists of four strategies for growth: market penetration, market development, product development, and diversification. Market penetration involves increasing market share in existing markets, while market development involves targeting new markets with existing products. Product development focuses on creating new products for existing markets, and diversification involves entering new markets with new products. By evaluating these strategies, businesses can determine the best path for growth.