Market expansion strategy pdf

Country market selection in international expansion 33 identify the target market or markets in which it wants to offer its product. Market expansion and grand strategy of rising powers the. Companies must then identify other markets that are easy to reach. The strategy determines the optimum mix of direct exports, foreign investment, cooperation through outsourcing, licensing, coproduction, joint venture, acquisition or merger with. Pdf expansion strategy of international hotel firms. As basis for an empirical research process, a theoretical framework was compiled from existing literatures on market growth strategies and strategy development process, where the strategies were considered both at the business level and corporate level. Pdf conceptualization of market expansion strategies in. One restaurant owner grew her business by adding a second marketprivate catering. The most obvious strategy is to sell the existing product to the existing market. Competing brands are entrenched in the united states market, but there is a lot of opportunity in the indian market. Unlike many agencies, marketing eye does not use a onesizefitsall approach to create a successful market expansion strategy. The process of offering a product or service to a wider section of an existing market or into a new demographic, psychographic or geographic market.

Using market penetration strategies, the firm may focus on existing market or existing products may be. Getting fresh food to market, for example, is challenging if it has to travel long distances in difficult conditions. To prepare, it is important to consider forward looking footprint strategies that examine. Global standardisation, teslas strategic response to high pressures for cost reduction tesla targets three key transnational consumer segments mangram, 2012, which it seeks to. Product development new productsexisting market a growth strategy based on product development is the mirror image of a market development strategy. Expansion opportunities exist in several markets, including india and the united states. There are several other ways of business growth strategies. Instead of pioneering a new market with existing products, the business attempt to roll out a new product in a market with which the firm is already familiar. Market expansion strategyperformance relationship taylor. Equally, expansion may deliver operational advantages.

Market expansion is the most common strategy in marketing. The idea is to start selling to new groups of prospective customers. Dont be product or market myopic its dangerous to assume that products and services that are successful in domestic markets will be equally successful elsewhere. An international expansion strategy comprises market entry strategy including crucial choices in regard to primary markets of focus, determination of target customer and channel strategy, resource allocation, product and service value offerings, brand positioning, and creation of an operating model. An expansion strategy is synonymous with a growth strategy. Developing and pursuing effective market expansion opportunities is one of the core competencies of. Conceptualization of market expansion strategies in developing economies. Have an exit strategy lets face it, even with proper due diligence and a sound strategy in place, geographic expansion is risky and can result in failure.

Nikes secondary intensive growth strategy is market penetration. But in case of nondurables the correlation is observed only with sales growth rate. With this concept theres a little risk since the companies dont have to educate the market with the new product, however, the growth is inhibited by competition or the decreasing trends. Based on reliable sources regarding the globalization of ikea the reader can follow the key issues and problems the company had to face when entering the asian market. Their aim is to grow, irrespective of the risk and the hurdles coming in the way. If your business is looking to expand its market share into new states, countries or markets marketing eye is the firm to consult. Forced market expansion and free market expansion are interchangeable strategies that essentially both work, at some cost, to expand share towards the objective of rising. A market development strategy really is a mini strategic plan because. Companies investigating potential markets must take stock of their.

Amazons retail strategy will push traditional brickandmortar retailers to innovate and compete with each other via innovations other than basic discount techniques. The reason for choosing a particular expansion option lies in the strategic rationale of an organization. If you find a way to get in front of more prospects than last year, you should be able to make more sales than last year, too. Market expansion is usually taken up by the business when they feel the. In the following paper, the strategies of the swedish company ikea for market entry to japan are discussed. In this strategy, the company grows by increasing sales revenues in existing markets. She is also considering a third market of selling signature dessert items through local grocery stores. Companies adopt a market expansion strategy when their growth peaks in existing channels.

One of the ways to step more safely into a new market is to employ an adjacent market strategy. Many of the reasons contractors fail when tackling new markets are outside of anyones control and due simply to market dynamics of supply and demand. Concentration strategies when an organisation focuses on intensifying its core businesses with a view on expanding through either acquiring a new customer base or diversifying its product portfolio, it is having a concentration strategy 4. Success depends on confirming that they have fulfilled existing markets. Growth strategies, growth expansion strategies, market. Using a market expansion strategy for organic growth. Dow chemical serves many local markets by replicating in each of these countries its. The key to a market development strategy is the understanding of the current baseline performance vs. Market expansion is an attractive strategy if you determine that sales to current customers and markets have been maximized. Decide if expansion is worth it, weighing the costs of adaptation against the attractiveness and growth potential of the market.

Pdf international market expansion strategies for hightech. The expansion strategy is adopted by those firms who have managers with a high degree of achievement and recognition. International expansion a roadmap to successful growth for. The growth strategies have been playing the central role in the expansion, development.

For example, supply chain issues may be to the fore in certain industries. The development of an international business strategy 9 if necessary, indepth market research will be carried out in the remaining countries offering a high. Correlation of individual components with performance indicators has also been studied. To be more data driven, look for the right business partner. Theres opportunity in an economy that produces and consumes less. For example, nike increases its stores and retailers in the united states to sell more athletic shoes to american consumers. In the past, coverage and prices were the main differentiators, but with the newest disruptor in the market, the commodity is a reality more than ever. What is a market expansion strategy and how can it boost. Footprint 2020 expansion and optimization approaches for. The strategy revolves around geography, customer base, and the products. Overall market expansion strategy score shows a positive correlation with sales revenue and profits in case of consumer durables. Market expansion is a strategy of expanding the market size by focusing on different segment of consumers. A firm seeks to achieve faster growth, compete, achieve higher profits, grow a brand, capitalize on economies of scale, have greater impact, or occupy a larger market share. Contrary to existing hypotheses that expansion strategies correspond to a microfinance markets stage of development2, our research indicated that all forms of expansion strategies exist in all industry phases.

This strategy is common among manufacturing companies evaluating the launch of new products. More detailed information about this stage will be presented in the following section of the paper. Market expansion potential is potential to which a business can be increased in a market. The potential of a market expansion strategy depends on the size of the new market that a business is trying to enter. This is the type of expansion strategy where businesses invest in resources towards a particular product line with proven technology facilitation. Hence market expansion strategy is an important strategic option in these countries. International expansion may change how a company needs to be organized and managed. Some general growth strategies in business include market penetration, market expansion, product expansion, diversification and acquisition. This is known as international market selection ims. The study and practice of marketing have broadened considerably, from an emphasis on marketing as a functional management issue, to a wider focus on the strategic role of marketing in overall. The reasons for the expansion could be survival, higher profits, increased prestige, economies of scale, larger market share, social benefits, etc.

Buy these notes in pdf format types of growth strategies. Pdf newly established, technologybased firms entering international markets often. Research related to market expansion strategy has primarily focused on assessing the fit between the organization and external factors such as market attractiveness, competitive advantage and risk, with minimal attention to internal factors such as organizational structure, management systems and corporate culture. The next shift in manufacturing locations is imminent. Amazon amazon was founded in july 1994 by jeff bezos and is the largest internetbased retailer in the world by total sales and market capitalization. A deduction research approach was appropriate for the study whereby qualitative empirical data was collected. The authors have conceptualized a market expansion strategy as a strategy of increasing primary demand for a product category by converting noncustomers. New productsexisting market a growth strategy based on product development is the mirror image of a market development. Three broad growth strategies are market leader strategy, market challenger strategy and market niche strategy boone, 2008.