Which business strategy involves improving existing products for current markets?

The strategy that involves improving existing products for current markets is product development. This approach focuses on enhancing or modifying existing products to meet the evolving needs and preferences of customers within the target market. Businesses may introduce upgrades, new features, or improvements that can increase customer satisfaction and drive sales without needing to enter new markets or create entirely new product lines.

Product development is crucial as it allows companies to stay competitive by responding to market trends and customer feedback, ultimately fostering brand loyalty and improving market share. In contrast, other strategies like market development focus on expanding into new markets with existing products, while diversification involves introducing new products into new markets. Product extension typically involves promoting existing products in a way that encourages wider use, but doesn’t necessarily imply improving or modifying the products themselves.