<P> In product development strategy, a company tries to create new products and services targeted at its existing markets to achieve growth . </P> <P> This involves extending the product range available to the firm's existing markets . These products may be obtained by: (i) Investment in research and development of additional products; (ii) Acquisition of rights to produce someone else's product; (iii) Buying in the product and "branding" it; (iv) Joint development with ownership of another company who need access to the firm's distribution channels or brands . </P> <P> In diversification an organization tries to grow its market share by introducing new offerings in new markets . It is the most risky strategy because both product and market development is required . (i) Related Diversification - Here there is relationship and, therefore, potential synergy, between the firms in existing business and the new product / market space . (a) Concentric diversification, and (b) Vertical integration . (ii) Unrelated Diversification: This is otherwise termed conglomerate growth because the resulting corporation is a conglomerate, i.e. a collection of businesses without any relationship to one another . A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets . </P>

Creating new products for new markets is called