Case Study 1
Darren Loy Pi Siang
1. Name and describe the four product/market expansion grid strategies and explain which strategy Google implemented with the Nexus One. The four product/market expansion grid strategies are Market Penetration, Market Development, Product Development, and Diversification. The Market Penetration strategy is when a company is introducing a new product into the market that has similarities to current products in the market. One of the most effective ways to use this strategy is to encourage their current customers to continue buying their products, to win over customers that are from the competitor’s side and to encourage people who have never used their products to start using it. The Market Development strategy seeks to expand its market by selling their products in new locations. That way, the company would be able to also expand their distribution channels as selling their product in new locations would mean that the company would have to approach the customers in the area differently. Also, by selling their product in new locations, the company would also be able to identify and target the potential users and buyers. The Product Development strategy is a simple concept. It basically seeks to improve the product by adding or developing new attributes to the product. This is to improve the quality of the product to make it more appealing to the customers. In a nutshell, it is to improve the technological aspects of the product. Diversification is a strategy used to step-up sales for new products and new markets. This strategy differs from the other three as it focuses on expanding into a new segment of an industry or to invest in a new market that a company sees potential in, while the other strategies tend to be more towards the technical, financial and merchandising aspects of the product. There are three types of diversification; concentric, horizontal and conglomerate. Concentric diversification is to...
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