A Study on new Market Entry Strategies
A marketing strategy defines objectives and describes the way you're going to satisfy customers in your chosen markets. The marketing strategy focuses on markets and customers. The marketing strategy sets your marketing goals, defines your target markets and describes how you will go about positioning the business to achieve advantage over your competitors. SCOPE OF THE PROJECT
This research report is covering marketing strategies are being used by different industries in different marketing conditions. This research has tried to throw some light on marketing strategies and aspects of strategies.
Aspects of Strategy
A universal component of marketing strategy is its content: details such as pricing, marketing mix, distribution channels, packaging, and target markets, which are affected by the characteristics of the product, costs, the competitive situation, market size and growth rate, industry characteristics and perhaps most important of all, the strategic marketing objectives that are sought. Another is form, the mechanism used for execution. This mechanism might be a project team, a joint venture, a new business unit, or any other mechanism designed or selected to deliver the content of strategy. The ideal form is one that puts together the resources, skills, and attitudes required for success. From their study of a number of high-tech ventures, Roberts and Berry ( 1985) offer a ninecell (3×3) matrix designed around the relative familiarity of the firm with the chosen markets and technology. Familiarity is divided into three levels: basic, new familiar, and new unfamiliar. Forms (referred to by the authors as entry strategies) considered include internal venture, joint venture, and venture capital investment or licensing. To these we would add project team, a separate business unit, a strategic alliance where the principal objective to match up the needs of the proposed venture, and the skills and resources required for success.A third aspect that emerges from the culture of the firm is strategic posture ( Miller 1983; Covin and Slevin 1989). This refers to the entrepreneurial conservatism orientation of the firm: top management's willingness to take risks, to favor innovation and change for competitive advantage, and to compete aggressively.There are two additional features of entry strategy that we wish to highlight in this study:
|a. |The aggressiveness of entry. This refers to the force applied--the power, strength and velocity of effort and amount of resources | | |committed. | |b. |The focus of the entry effort--the extent to which the effort is sharply focused or on a broad front. |
Why are aggressiveness and focus important? The fact is that highly aggressive, broad-front strategies employ the greatest amount of resources compared to other alternatives. They are enormously costly, and entail the greatest risk of money and reputation. Costly and risky as they may be, aggressive entry strategies may be warranted by competitive necessity or the promise of high return, or may be chosen because of the accepted wisdom or folklore that getting there first with the most ensures the greatest chance of success. Biggadyke ( 1979), in his study of new ventures by Fortune 200 companies, reports greater profitability after seven years for ventures that reach for market share rather than early profitability, implying an aggressive strategy. Tsai, MacMillan, and Low ( 1991), using the Profit Impact of Market Strategies (PIMS) Start-Up data base, limited to industrial markets, find a high correlation between venture performance and aggressiveness of entry (here performance was measured by market share achieved). The evidence is quite strong that new product and new venture...
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