Away from assessing current businesses, designing the business portfolio absorbs finding businesses and products the company should consider in the future. Companies need expansion if they are to compete more effectively, satisfy their stakeholders, and magnetize top talent. Growth is like pure oxygen and it creates a vital, enthusiastic corporation where people see genuine opportunity. At the same time, a firm must be careful not to make growth itself an objective. The company's objective must be profitable growth. Marketing has the main responsibility for achieving profitable growth for the company. Marketing must identify, evaluate, and select market opportunities and lay down strategies for capturing them. One useful device for identifying growth opportunities is the product-market expansion grid. It’s a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
Identifying Companies new intensive growth opportunities product-market expansion grid can be a very useful framework. There are four strategies, one for each of the quadrants:
Market Penetration Strategy
When the product is in the current market, it can still grow. There are three major approaches to increasing current product's market share:
1. Encourage current customers to buy more.
2. Attract competitor's customers.
3. Convince non-users to use the product.
When the current product is launched in a new market, there are three approaches to develop the market:
1. Expand distribution channels.
2. Sell in new locations.
3. Identify the potential users.
When a new product is launched in the current market, the intensive growth strategies could be to:
1. Develop new features.
2. Develop different quality levels.
3. Improve the technology.
When a new product is launched in a new market,