Growth is a way of life. Almost all organizations plan to expand. This strategy isfollowed when an organization aims at higher growth by broadening its one or more of its business in terms of their respective customer groups, customers functions, andalternative technologies singly or jointly in order to improve its overall performance. – E.g.: A chocolate manufacturer expands its customer groups to include middle aged andold persons among its existing customers comprising of children and adolescents. Types of Growth Strategies Market Penetration: A business will utilize a market penetration strategy to attempt to enter a new market. The goal is to get in quickly with your product or service and capture a large share of the market. You can also achieve market penetration through aggressive marketing campaigns and distribution strategies. Rapid Market Penetration: It is based on two assumptions, to lower the price & promotional activities to be increased. Slow Market penetration: It is also based on two assumptions, to lower the price but promotional activities are not changed Market Expansion: It involves selling the same products to new markets by attracting new users to its existing products. Market development can be geographic wise and demographic wise. E.g.: XEROX Company educated small business entrepreneurs to create new markets. A company might decide to increase its territorial reach and therefore enter a new market. Product Expansion Product expansion is a strategy that seeks increased sales improving or modifying present products or services. A product expansion growth strategy works well when technology starts to change. A small company may also be forced to add new products as older ones become outdated. It involves selling new products to the same markets by introducing newer E.g.: products in existing markets. the tourism industry in has not been able to attract new customers in significant numbers. New products such as selling as a golfing or medical treatment destination are some of the product development efforts in the tourism industry to attract more tourists. ANSOFFS MATRIX
Growth is a way of life. Almost all organizations plan to expand. This strategy isfollowed when an organization aims at higher growth by broadening its one or more of its business in terms of their respective customer groups, customers functions, andalternative technologies singly or jointly – in order to improve its overall performance. E.g.: A chocolate manufacturer expands its customer groups to include middle aged andold persons among its existing customers comprising of children and adolescents. Types of Growth Strategies Market Penetration: A business will utilize a market penetration strategy to attempt to enter a new market. The goal is to get in quickly with your product or service and capture a large share of the market. You can also achieve market penetration through aggressive marketing campaigns and distribution strategies. Rapid Market Penetration: It is based on two assumptions, to lower the price & promotional activities to be increased. Slow Market penetration: It is also based on two assumptions, to lower the price but promotional activities are not changed Market Expansion: It involves selling the same products to new markets by attracting new users to its existing products. Market development can be geographic wise and demographic wise. E.g.: XEROX Company educated small business entrepreneurs to create new markets. A company might decide to increase its territorial reach and therefore enter a new market. Product Expansion Product expansion is a strategy that seeks increased sales improving or modifying present products or services. A product expansion growth strategy works well when technology starts to change. A small company may also be forced to add new products as older ones become outdated. It involves selling new products to the same markets by introducing newer products in existing markets. E.g.: the tourism industry in has not been able to attract new customers in significant numbers. New products such as selling as a golfing or medical treatment destination are some of the product development efforts in the tourism industry to attract more tourists. ANSOFFS MATRIX
Strategic-Management-Notes.docx