Essay on Porters Five Forces

938 Words Nov 27th, 2012 4 Pages
PESTEL ANALYSIS POLITICAL FACTORS/ CHINA | KEY DRIVERS | IMPACT ON KOYO JEANS | * Government interference | Threat | * Government stability | Opportunity | * High Government controlled financial institutions | Threat | ECONOMIC FACTORS /CHINA | KEY DRIVERS | IMPACT ON KOYO JEANS | * Level of disposable income | Opportunity | * Low Economic freedom index rating | Threat | * Low cost of labour | Opportunity | | | | |

SOCIAL FACTORS /CHINA | KEY DRIVERS | IMPACT ON KOYO JEANS | * Peer-to-peer recommendation | Threat/opportunity | *
…show more content…
“the polluter pays” | Threat |

Market penetration

Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets.

Market penetration seeks to achieve four main objectives:
•Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling
•Secure dominance of growth markets
•Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors
•Increase usage by existing customers – for example by introducing loyalty schemes

A market penetration marketing strategy is very much about “business as usual”. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.

Market development

Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets.

There are many possible ways of approaching this strategy, including:
•New geographical markets; for example exporting the product to a new

More about Essay on Porters Five Forces

Open Document