Market-led strategies are utilized by the organizations which are coming into the business and which have not got many assets and resources to be used. Most of the time market led strategies are used by young or service corporations. The market led-strategies function on the market or client requirements. Businesses attempt to offer the particular service appropriately to the customer’s needs and become a part of the market.
According to Kotler (2008), the product/market expansion grid ( Figure 1) is a very essential device for the companies when following the market-led strategies. A very widespread opportunity for starting companies is the fact to penetrate the market by putting the current product to the current market segments. Another essential strategy for the company growth is the fact to put the customized product to the existing market known as a product development. Company can use the market development to grow the company or diversity by starting the new product and the market. It is very important for the company to choose what strategy the company should go after. The market segmentation is an important concept that every organization have to understand and which offers the variability of the products. There are various ways to segment the market and this is the reason that the company should choose the most useful way to achieve the success. The marketers consider that the segmentation of the market can increase the sales.
Michael Porter (1980) introduced the model of sustaining competitive advantage by market-led strategies. According to his model, there are three strategies such: cost leadership, differentiation or focus this is probable to sustain the competitive advantage (Graph 2,). On the other hand, some say that these strategies are doubtful. As with Porter 's Generic
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