Search results
Results from the WOW.Com Content Network
In a market development strategy, an organization tries to expand into new markets, geographies or countries. It does not require significant investment in R&D or product development and the management team can leverage existing products and take them to a different market. [5] This can be accomplished by:
Ansoff pointed out that a diversification strategy stands apart from the other three strategies. Whereas, the first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, the diversification usually requires a company to acquire new skills and knowledge in product development as well as new insights into market ...
A company may do this via internal expansion or through mergers and acquisitions. [1] [2] [3] The process can lead to monopoly if a company captures the vast majority of the market for that product or service. [3] Benefits of horizontal integration include: increasing economies of scale, expanding an existing market, and improving product ...
Shajahan and arya(2004) stated that, "Demands for the MkIS can be expressed by three crucial developments. Firstly, when companies expand and diversify into new markets, both the companies and customer's point of view are needed to be handled by the marketing managers. Therefore, there would be greater need for marketing information.
Market development aims at non-buying shoppers in targeted markets and new customers in order to maximise the potential market. Before developing a new market, companies should consider all the risks associated with the decision including its profitability. [16] If a company is confident about their products, believes in their strengths, and is ...
Vertical integration is often closely associated with vertical expansion which, in economics, is the growth of a business enterprise through the acquisition of companies that produce the intermediate goods needed by the business or help market and distribute its product.
From a microeconomic standpoint, expansion usually means enlarging the scale of a single company or firm. This can be achieved through internal actions—opening branches, finding new customers, inventing products, developing lines of business—and through integration, for example, taking over or merging with other companies.
Control over a selection of foreign markets and choice of foreign representative companies; Good information feedback from target market, developing better relationships with the buyers; Better protection of trademarks, patents, goodwill, and other intangible property; Potentially greater sales, and therefore greater profit, than with indirect ...