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Market penetration strategy is used by an organization when it has potential to grow the market share in the present industry. It involves sales driven approach in the present environment. Market penetration can be achieved through — increasing sales touch points, reaching directly to customers, improving dealer network, increasing the customer life time value, increasing the basket share of customer total spending etc.
Analysis of the External Environment of Business 1
Ansoff Matrix is a competitive strategy analysis tool. What is Market Development in Ansoff Matrix? Market development strategy involves efforts on part of the Appdirect Portal to create new markets and channels for the current products. This may involve — Swot Analysis Of Alphabet Games international markets, entering new domestic markets, tying up with complimentary companies to drive sales of current products etc. One of the prominent example of Market Development is — How Tesla is building recharge station at a certain distance to enable customers in new markets to use its cars What is Product Development in Ansoff Matrix?
How and when to use Product Alphabe Strategy? Product development involves Appdirect Portal either adding new features to the current product or developing new products for the existing market. One of the prominent examples of organization using product development strategies is — Microsoft constant release of Windows Office Versions after specific duration of time.
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The customers and markets of the product largely remain the same but the company keeps launching improved version of the products to target the existing market. What is Diversification in Ansoff Matrix? How and when to use Diversification Strategy?
Appdirect Portal can use diversification strategies when both the product and market is new to the firm. Diversification strategy is used when an organization see an opportunity either in an adjacent industry or in a completely different industry.
For example Microsoft entry into the gaming industry with Xbox. Both the product and consumer segment are new to the firm and it had to build a completely different distribution and revenue model from the one it was using to do Enterprise Productivity business.]
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