Preview

Strategies Can Be Used by Businessman to Protect Their Firms’ Market.

Good Essays
Open Document
Open Document
900 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Strategies Can Be Used by Businessman to Protect Their Firms’ Market.
Summary
This article is giving experience suggestion that certain definite strategies can be used by businessman to protect their firms’ market.
Corporation today compete on an international basis, so must have an appropriate international business strategy which can give comparative advantage. Yet the managers rarely have a systematic approach to their international business operation. The insular company with unattractive options is losing market share and margin. To deal with this dilemma requires a conceptual framework to analyze and predict patterns of international competition and subsequently develop an integrate system of investment, marketing, pricing and financial program. The main elements of this analytical framework for strategy formulation are market segmentation, cost volume relationship and portfolio management.
Product Market segmentation is a way of analyzing the competitive of new demand-supply developments for strategy purpose. A product market segmentation is determined by the economics of supplying, a customer group with a common purchasing attribute. Many companies have difficulty competing with internationally oriented competitors despite an understanding of world trade patterns because they lack basis insights about changes in market segments. Major successes in world markets, despite overall industry declines, they are attributable to an extension of a clear segmentation concept. Product market segment exists if there is a sharp differential in the cost of or ability to supply a given product to end-user group. A market segment therefore defines a particular relationship between revenues and expenditures. Any large change in this relationship indicates a strategy problem. One type of emerging market segment is the development of markets in follower countries. Dominating a market segment means controlling market share. Loss of dominance means loss of world market share.
Cost-Volume relationship is the level of activity of a company
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Mkt 421 Marketing Plan Phase 2 Paper
    • 1524 Words
    • 7 Pages

    Mkt 421 Marketing Plan Phase 2 Paper

    “Market segmentation is a two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2011, p. 92). To complete successful market segmentation an organization must gather information on potential customers, divide the population into various market segments, estimate the most profitable segments, and rank the market segments by potential sales. This process is imperative during the marketing process because it distinguishes…

    • 1524 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    Case Study: Broadway Gym
    • 1306 Words
    • 6 Pages

    Case Study: Broadway Gym

    Market segmentation is a process of bifurcating the various segments of market, so that each element of marketing can be analysed separately and policy can be prepared accordingly (Chen, et al. 2013, p.123).…

    • 1306 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    BUS 620 Week 3 DQ 2
    • 421 Words
    • 2 Pages

    BUS 620 Week 3 DQ 2

    Marketing Segmentation . What are the different levels of market segmentation? Synthesize the segmentation strategies that manufacturers of personal comp...…

    • 421 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Best Essays

    Strategic Business Analysis
    • 2788 Words
    • 12 Pages

    Strategic Business Analysis

    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.…

    • 2788 Words
    • 12 Pages
    Best Essays
    Read More
  • Better Essays

    Market Analysis
    • 1434 Words
    • 6 Pages

    Market Analysis

    This part of the marketing management Group Project will explain how we can evaluate the attractiveness of identified market segments and why I think our firm should pursue market specialization. I will explain how we can evaluate the attractiveness of identified market segments by identifying and explaining the five key criteria that make a segment plan useful followed by a brief description of how population size, growth rates, and scale of economies can affect profits and of course why we want this venture to be low risk. Next I explain market specialization and discuss why I think it is the most beneficial marketing option. I will begin by explaining how we can evaluate the attractiveness of identified market segments…

    • 1434 Words
    • 6 Pages
    Better Essays
    Read More
  • Best Essays

    Organizational Presence
    • 1186 Words
    • 5 Pages

    Organizational Presence

    Market segmentation is the process of grouping a market into smaller subgroups (Market segment, 2010). Advancements in technology offer customers options when it comes to shopping and getting the things they want and need. No industry has been completely untouched by technology. Companies are being forced to broaden their considerations when they begin to reach out to the different segments they target. It’s not only the younger generation who is utilizing new technology to transact daily business affairs. A…

    • 1186 Words
    • 5 Pages
    Best Essays
    Read More
  • Good Essays

    Chapter 8
    • 1089 Words
    • 5 Pages

    Chapter 8

    Market segmentation is to aggregate potential buyers into groups that have common needs and will respond similarly to a marketing action. Market segments are the relatively similar groups of potential buyers that result from the market segmentation process. The existence of different market segments has caused firms to use a marketing strategy of product differentiation. This strategy is related to using different marketing mix activities, such as product features and advertising, to help consumers perceive a product as being different and better than competing products. One of the marketing segments’ tools is a market-product grid, which is a framework to relate the market segments of potential buyers to products offered or potential marketing actions. A business goes to the trouble and expense of segmenting its markets when it expects that this will increase its sales, profit, and return on investment. When expenses are greater than the potentially increased sales from segmentation, a firm should not attempt to segment its market. Three specific segmentation strategies that illustrate this point are (1) one product and multiple market segments, (2) multiple products and multiple market segments, and (3) segments of one, or mass customization.…

    • 1089 Words
    • 5 Pages
    Good Essays
    Read More
  • Best Essays

    ALDI
    • 3223 Words
    • 11 Pages

    ALDI

    The supermarkets in the UK is expanding with retail food products being sensitive to cross-price elasticity in that supermarkets are encouraged to be inventive, which will accomplish an advantage, matched to its discounter competitors (Emerald Group Publishing Limited , 2014). This report will explain the types of sales strategies that Aldi may develop in order to compete with other supermarkets within the same market. Aldi have to be considered as a competitor as society is searching for value and that customer behaviour is a major influence in sales strategies and that Aldi will be successful in future years with their overall strategy.…

    • 3223 Words
    • 11 Pages
    Best Essays
    Read More
  • Good Essays

    A Case Study of Virgin Airlines
    • 1391 Words
    • 6 Pages

    A Case Study of Virgin Airlines

    Internationalization of the business nowadays apparently became a trend for the organizations to expand their market position and gain the competitive advantage among their contemporaries. The extent and nature of business activities are almost as diverse and comprehensive as the totality of the social and economic interest of a man. Various business activities acknowledged the opportunities that the internationalization may deliver. Through their ability and capacity to expand their business operations, internationalization is highly possible. For most of the time, the high degree of the competition under the umbrella of an industry and the number of competitors that are engaged in the creating the same product and/or services or often referred as the competitors that are closely related can cause market stiffening and will tend to saturate the resources. This idea is one of the reasons on why the businesses are moving into foreign markets.…

    • 1391 Words
    • 6 Pages
    Good Essays
    Read More
  • Powerful Essays

    Turkey International Business Strategy
    • 2509 Words
    • 8 Pages

    Turkey International Business Strategy

    For international business expansion, the designing and development of strategy is significant to understand the market in international context. The business firms expanding abroad often face issues such as local adaptation for a long term survival in the economy. The international business strategy is a plan which undertakes wider research on various elements such as market trend, comparing host country with home country, analyzing the marketing environment and how to achieve sustainable competitive development. Expansion in international countries is not just a mode of entry…

    • 2509 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Best Essays

    Market Entry Strategy for Biomedical Companies
    • 2094 Words
    • 9 Pages

    Market Entry Strategy for Biomedical Companies

    Generally, the strategy that is best for a specific competitive situation can be found by analyzing the firm’s resources and expertise. The specific circumstances of the foreign business environment and the strategic objectives of the firm and various factors influencing aspects like profitability, market share and degree of operational control are also analyzed (Gurau, 2004).…

    • 2094 Words
    • 9 Pages
    Best Essays
    Read More
  • Powerful Essays

    International Business Strategy
    • 1931 Words
    • 8 Pages

    International Business Strategy

    Expanding globally allows firms to increase their profitability and profit growth by entering new markets where indigenous competitors lack similar competencies, by lowering costs and adding value to their product offering through the attainment of location economies, by exploiting experience curve effects, and by transferring valuable skills between their global networks of subsidiaries. In another word, the strategies which increase profitability may also expand a firm’s business and thus enable it to attain a higher rate of profit growth (Hill, 2009). When a company plan to compete in the international environment there are two crucial factors affect the firm’s choice of strategy which are strength of pressures for cost reductions versus those for local responsiveness. Firms typically choose among four main strategic postures to response these two factors when competing internationally. These can characterized as global standardization strategy, localization strategy, transnational strategy and international strategy which have been illustrated as figure 1. In this report, as a management consultant, the two cases from our client will be brief introduced firstly. Then, we will examine these four main strategies related the cases which delegated by our client and recommend to each of them one optimal choice of the basic strategies to compete in the international environment. Finally, we will highlight the impacts of the recommendation for each company’s organizational architecture.…

    • 1931 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    Market Segmentation of Haagen-Dazs
    • 726 Words
    • 3 Pages

    Market Segmentation of Haagen-Dazs

    Market segmentation refers to the process of dividing a market into a smaller group of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. The marketers of Haagen-Dazs in Malaysia have tried different market segmentation variables to find out the best method to market structure. The characteristics that used are geographic and demographic.…

    • 726 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Effect of Global Youth Culture
    • 2410 Words
    • 10 Pages

    Effect of Global Youth Culture

    The importance of international marketing increased in the last years in a context in which market saturation and competition broke out within different branches. The analysis of foreign markets became more important for enterprises, because of the increasing internationalization of the business activity. While at the beginning of the internationalization, standardization and differentiation just considered domestic markets, today market segmentation is taken on global extent because of intensified individualisation of behaviour 's demand of the consumers. It can happen, that consumers of different countries due to increased mobility, assimilation of demographic structure and better communication and information technologies, show more similarities in their demand than consumers in the same country. Changes in consumer 's behaviour as well as shortened product life cycles by increasing expenditures for research and development, indicate the necessity and the potential in cross-border segmentation, taking into consideration marketing activities on a global scale. The existence of trans-national target groups should not be universally easy taken by enterprises, the different backgrounds must me examined before the respective products are placed on the market.…

    • 2410 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Good Essays

    bentley
    • 1163 Words
    • 5 Pages

    bentley

    International market segmentation is the dividing of market into segments, this allow marketers to effectively determine whether business can thrive in a particular area. Segmentation is based on four factor namely geographical, psychographic, demographic and lastly behavioral segmentation. Geographical segmentation refers to grouping markets geographically such as nations, states or cities. Psychographic segmentation is the dividing of buyers into groups based on lifestyle or social class/status. Demographic segmentation uses factors like age, gender, occupation and etc to separate markets into groups. Last but not least, behavioral segmentation, this kind of segmentation divides buyer into groups by their knowledge about particular goods, their usage towards the goods such as if they are regular user or one-time user and their responses towards the product. To efficiently segment a market, market segmentation is based on five criteria which are substantial, measurable, accessible, differentiable and actionable. Substantial meaning that is the importance, size and worth of the market considerable, will there be enough demand or needs from the market to sustain the business in the area. Measurable obviously giving us a catch that things or factor must be able to measure such as purchasing power, segmented size and characteristic. Accessible ensures that goods, product or services can access that particular area to be segmented, for example, if a company decided to advertise a certain product in the area but the area there has no stable internet connection, thus inaccessible. Differentiable ensures that segmented area must be differentiable, different product must react differently in different segments. Lastly, actionable, areas that are segmented by actionable must result in actions, such as customer must have buying behavior that results in any action. This poses a challenge to Bentley as the company experienced a sudden huge decrease of sales in 2008, mainly…

    • 1163 Words
    • 5 Pages
    Good Essays
    Read More

Related Topics