Different strategy for market expansion – Essay
Different strategy for market expansion
Market expansion decision is one of the most difficult decisions taken by any organization, management needs to conduct a market analysis and also do proper strategy before doing so. Further it is also very crucial to take the right path for market expansion, which varies with organization, its market situation and other factors as well. This article will help the students in understanding the meaning of market expansion, its advantage, various strategies and their applicability. This article will help the students in developing their analytical ability by understanding the concept of market analysis well.
Market expansion is a stage in which an organization assesses its present organizational position, market condition, product portfolio and finds ways to increase its market revenue by adopting new strategies and market opportunities. Market expansion will help the company in developing its marketing capability, new segments, customer groups and product usage. Market Expansion also identifies alternative technology, additional uses for products, determines any changing market conditions, and measures relative costs for diversifying into targeted markets. There are different methods that an organization can use to expand its market, which have been discussed below;
- Company can launch a new product in the market to increase its market; new product will help in targeting new customer segments for the company. This step can be taken by the company by evaluating the customer demand and launching what customer needs.
- Another method of market expansion is to increase the total sales of the product in the market. This strategy can be easily adopted by modifying the company strategy for its product, price, promotion and place.
- Expansion in a new market, company can enter into a new market all together, where demand is high for the product. Still entering in a new market involves high risk and requires lot of planning to be done by the management.
- Start licence the manufacturing of the product or service, this involves low risk and investment. This strategy is generally adopted by well known brands for increasing its market share.
- Company can also plan to go global at once; it will be highly risk oriented decision and required a lot of research and hard work. This strategy is only suitable for multinational organizations and already establishes firms.
Besides adopting any of the above mention strategy, company needs to conduct a proper environmental and swot analysis to understand the internal and external position of the company. There are various models such as Igor Ansoff model which can be used to evaluate the present scenario and take the final decision for the company. Academic Assignment is the market leader in assignment consultancy service in the global market. we provide high quality assignment consultancy services in very low prices. We also provide high quality reference papers to help the students in understanding various types of assignments such as report, dissertation, critical analysis, thesis, editing and proofreading service, case study analysis etc. For any guidance please contact us through email us or call us.