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Market Penetration Analysis
PAGE \* MERGEFORMAT 23
Market Penetration Analysis
Only well-managed and existing businesses in order to further. It is a kind of market penetration strategy based on existing products to fully develop its market potential of the enterprise development strategies, so it is also known as the basic business development strategy.
‘Person who, without long and short term, he must have worried,’ the development of enterprises need to have a proper long-term direction and goals, namely, development strategy. Professor Ansoff Strategic Management pioneer, enterprise development strategy consists of four elements: product markets is used to define the scope of 11 enterprises to seek new areas of coverage; growth vector - used to indicate the companies within the scope of action in the direction; competition Advantages - used to describe the possible new areas of individual characteristics; third-party effect - is used to show that the business in new areas do have the ability to succeed.
Enterprise development strategy based on the above definition, Professor Ansoff divided into four different business development strategies: market penetration, market development, product development, diversification of operations (can be used as matrix for explanation).
Products New Products Existing Products
Task
Existing mandate, market penetration product development
Market development, diversification and new tasks
Four kinds of different development strategies, although both the enterprise’s products market portfolio as a starting point, but with a different strategic objectives, namely, four kinds of different development strategies for the future product market portfolio varies.
Four different development strategy aims to:
Market penetration - in its current product portfolio for the development of the market focus, and strive to increase the product’s market share;
Market Development - a company’s existing range of products to open up new t
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