Disadvantages Of Market Expansion Strategies

This will not only retain the existing customers but will also attract new ones to increase the customer base to optimal level.

Diversification is when a company introduces a new product/ service to a new market but does not relate it to the existing product. The product is completely new.

Firms must consider many strategies when attempting to realize growth. Depending upon the stage of

There is much to consider when expanding a business. How will you make, market, and distribute your product. Are you willing to take full liability for your product and understanding the legalities of what happens if your product is defective? Once that has been established, it’s important to make sure that your business dealings are in order. The strength of the contract and what all it entails. Knowing that the legal document is important more so when things tend to go downhill. Above all is deciding which type of business entity the company will select especially if the company starts out small and looks to

Diversification - Practice under which a firm enters an industry or market different from its core business.

Due to the growing competition and diminishing market share, companies are opting for different strategies to achieve their survival objectives as well as growth. Companies are thus executing grand strategies to provide their businesses with a clear direction for its strategic actions. These strategies, therefore, aim at both short term and long term sustainability and growth, and they include innovation, market development, product development, and concentration.

Growth Strategies – is a strategy aimed at winning larger market share, even at the expense of short term earnings. These consist of 4 broad growth strategies:

Growth strategies – It is the strategy which always aims high and tries to get as larger shares in the market as it can.

And plus as these new businesses take place, new opportunities may

Being able to acquire a new market may bring those new customers to their current market.

Strategy concerns to plan formulation and actions taken to empower an organization to carry out its intended objective effectively. To effectively determine a strategic plan for growth in such a explosive business environment, the company must understand how the various strategy like cost differentiation, cost leadership, stability & growth strategy, etc. function in the industry and regard the specific situation of the company.

The target for Market Penetration strategy is to increase the market share and sales revenues by putting more marketing efforts, increasing the sales forces, increasing advertising expenditure and launching more sales promotion campaigns to promote existing products and services in existing markets. That means, Products and services haven’t been changed nor enhanced. Instead, this strategy is intended to penetrate the existing market deeper and wider with existing company’s current products and services. Existing market means both new customers of existing market or existing customers in existing market. There are several methods for market penetration. Firstly, companies do some advertising on production

Analyzing the trends and consumer behavior indicates that horizontal expansion will be necessary to capture the full and growing target market. Horizontal expansion can be

When a company grows it achieves economies of scale, it increases its market shares and thus wipes out competition. A company starts making more profits and can use these in constructive ways such as employing specialist workers and improving the variety and quality of products, by delving more into research and development. These are only some of the

            Other environmental influences, such as competition, may fuel the company’s desire to create more and better products that could well determine their location and standing in the global market. Increase in the number of competitors for the same line of products may mean that there