Diversification strategy market penetration. In diversification an organization tries to grow its market share by introducing new offerings in new markets. It is the most risky strategy because both product and market development is required. (i) Related Diversification - Here there is relationship and, therefore, potential synergy, between the firms in existing business and  ‎Growth strategies · ‎Market penetration · ‎Market development · ‎Product development.

Diversification strategy market penetration

McDonald's Diversification Strategy

Diversification strategy market penetration. Market penetration, sometimes referred to as a market share, is a measure of the percentage of sales volume an existing product or business achieves in relation to the competition. A product that.

Diversification strategy market penetration

The Secret Ingredient behind the success to Google was being more relevant by indexing. Having information at fingertips of user has made Google huge success. Following are some products and brief intro for them 1- Gmail: Problem with email before Gmail was that there was a very limited space for storage.

Gmail solved this space by offering Un-Limited space. Users can save all the mails with no need to delete the mails at any point of time. Users also started using Gmail for keeping their documents and pictures as a backup. Since released as beta version it has increased the number of users and has been liked by users. Nobody wants to be lost in the woods!?

This is where another very user friendly product of Google comes, Google Maps. Google Maps changed everything. The service debuted on Feb.

It gives comfort to the user to view the world from the couch of your own home. Street View are even more detailed and realistic view of places. Google maps gives maps a true meaning. Android is based on Linux software and gives users a different way to experience their mobile phones.

Chrome was born in September Chrome is one of our favorite browsers and we love it for its speed and simplicity. The browser is also very consistent allowing you to sign in with your Google account on multiple computers giving you the same experience. Google Docs took productivity tools online. It changed the way that people collaborate on documents and back up their work. The best thing about the service is the price tag: As we see Google has been working for innovation and towards the problems of users.

The strategy of coming with new and improved products by keeping in view the users demand Google has been successful all these years. Hope to experience many more improved products of Google. Strategy whereby an organization introduces its offerings to markets other than those it is currently serving.

Every year Sage Pay processes billions of pounds worth of secure payments for its 45, customers and makes the process of accepting payments online, over the phone, or in person simpler, faster, safer and more profitable for businesses of all sizes. In addition to providing payment technology Sage Pay also advise customers on the latest ecommerce trends and innovations to ensure they remain competitive. According to the data provided by Company, In the UK Sage Pay has a business relationship with over 2, partners including digital agencies, web developers, hosting and shopping cart providers.

Many partners are already pan-European and have expressed interest in continuing the partnership in the German market. This gives a positive signal in Market Development. Overall it seems an accurate strategy to enter German market for Company growth on the theory of Market development. Sage Pay with its long serving experience in business and good repute along with having customers and partners on its side give a competitive advantage.

I believe Sage Pay stakeholders will surely be advantaged. Reason behind the raise in the revenue is believed to be focus mobile technology, marketing campaigns and a website redesign, seeking to vault the company beyond its roots in Internet auctions. Adding new retail partners that helped improve its search and made shipping faster, while its mobile applications have reached million downloads.

This strategy of working on new opportunities and working on weak area not only EBay Inc penetrated in the market but also gave better results. EBay made changes that were targeted to convenience and customer service for marketplace visitors.

The company paired up with Geek Squad Inc. The online retailer also redesigned its homepage, centering it around photos, similar to Pinterest Inc. There are more than 2 million items listed a week from mobile devices.

Till now EBay is doing well by working on weak areas and new opportunities. The strategy to use mobile as a sale point gave an edge to EBay, which clearly reflected in the Third Quarter results. It clearly demonstrated an example of Market Penetration. Up-coming holiday season as far as I see will also advantage from this strategy. Adding businesses to the portfolio, that is different than the nature of business, beyond its current product and market.

Hallmarks have always been pro-active to adapt to the changing life style and needs of consumers. This is the reason that Hallmark Cards, Inc. For company growth they opted into new business and new products to achieve the benefits of diversification. All the above mentioned strategies for company growth are suitable based on the specific company style, environment in which it is operating, opportunities available, funds and skills availability and most of all the vision of a company.

So adding new market, new product or a business itself, organizations should be very careful with good amount of analysis and justification before proceeding. You are commenting using your WordPress. You are commenting using your Twitter account. You are commenting using your Facebook account.

Notify me of new comments via email. Product Development Improving an existing product or developing new kinds of products is called Product Development.

Market Development Strategy whereby an organization introduces its offerings to markets other than those it is currently serving Illustration: Market Penetration It is a strategy to increase market share of a product or service in an existing market. Leave a Reply Cancel reply Enter your comment here Fill in your details below or click an icon to log in: Email required Address never made public.

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