Which type of companies are referred to as prospectors?

Prospectors are characterized by their strategic orientation toward innovation and growth, specifically in the pursuit of new products and markets. This approach signifies a proactive and exploratory stance, where such companies actively seek opportunities to expand their product lines and to venture into new and potentially lucrative markets. This reflects a commitment to not just compete in existing arenas, but to carve out new paths for growth and profitability.

The other options describe different strategic focuses. Those that remain within a stable product domain are typically more defensive and may be seen as defenders rather than prospectors. Companies that concentrate on improving internal processes may prioritize operational efficiency rather than expansion into new markets. Finally, organizations that prioritize resource management often focus on optimizing their existing resources and capabilities instead of actively seeking out new products or market opportunities. Therefore, the choice highlighting the pursuit of new products and markets accurately captures the essence of what defines prospectors in a business context.