Evaluation of alternative growth paths available to organizations Essay

Evaluation of alternative growth paths available to organizations - Essay ExampleEverything takes some date and any initiative taken by a naked as a jaybird entrant takes some time to meliorate and yield desired upshots. There are four different strategies that can be chosen by a brisk entrant to penetrate a new trade. These strategies are embodied in what is popularly known as Ansoffs Matrix (Pearce and Robinson 2007). The four pronged attack that a marketer must(prenominal)iness implement in order to make a mark in a new market are aptly embodied in this matrix which clearly identifies between quick crossings and new products and lively markets and new markets. The pictorial representation of the matrix is (tutor2u 2009) It is quite obvious that the strategies differ in different situations. If a company wishes to make its presence felt in an existing market with existing products it needs to pack strategies that would help it in penetrating the market. But if the compa ny is attempting to introduce new product in an existing market, it needs to concentrate more on strategies related to product development as that would help it in creating a firmer hold on the existing market. Similarly, if the company is attempting to introduce existing products in new markets, it must concentrate on strategies that are closely associated with market development. Whereas, if the company has grand plans of entering new markets with new products it must embark on a path of diversification and devise relevant strategies. Market acumen Product/market placement This schema attempts to increase the market share of an existing product in an existing market and is generally adopted by firms that want to increase their turnover without altering their product portfolios. Main Principles As the main emphasis is on change magnitude the turnover, management should concentrate on increasing sales personnel while offering attractive discounts and bargain sales that are made t o appear genuinely appealing through aggressive sales promotion and advertising. However, there is no assurance that much(prenominal) moves would pay dividends and a firm should adopt such strategies only if it feels the market has not matured or its market share is steadily decreasing due to onslaught of rivals. Organizational Example The best warning of such market penetration strategy is observed in the means Airtel is promoting its services in the alert telephony market in India. Pros and Cons There is bound to be a lot of investment in advertising and promotion and per unit revenue gets reduced due to discounts. So, the sales volumes must be sufficiently large to offset these reductions. But that can never be guaranteed. However, if the venture becomes successful, the firm can relieve oneself substantial revenue. Market Development Product/market placement When a firm tries to discover new markets for an existing product it is termed as market development strategy. It is obvious that a new market would result in additional turnover and consequent bolstering of the bottom-line. Main Principles There are two basic methods of rivet on a potential market. Such a market can be configured on the basis of geographical location such as state, country, region or even a city, or it could be delineated on the basis of demographic divides as gender or age. It could even be demarcated on the basis of income or educational or family background. This move is obviously riskier than market penetration as the firm is entering new and uncharted territories and should be undertaken only after potential for further expanding upon in domestic market is exhausted. Organizational Example The best example of market development strategy is exemplified by the ventures made by Pakistan Oil Company in new markets in Afghanistan or the way Chinese products, especially consumer products that have expanded their market all over the world. Pros and Cons A