Assessing Growth Opportunities

355 Words2 Pages
Assessing growth opportunities involves planning new businesses, downsizing, or terminating older businesses. Intensive growth -- corporate management's first course of action should be a review of opportunities for improving existing businesses. Business development strategies seek to match marketing opportunities to the organization's resources (what it can do) and its objectives (what management wants to do). While some creative marketers are able to easily uncover attractive marketing opportunities, many of us are not so innovative. So, it is useful to have a framework for thinking about the broad kinds of marketing opportunities we seek to find. The Ansoff’s model is one of the best tools for organizations to develop market and product expansion strategies. Ansoff’s model is based upon four types of strategies as shown and discussed below. 1. Market Penetration Market penetration means trying to increase sales of an organization's existing products or services in its existing markets. This can be accomplished by strengthening current customer relationships to increase their rate of product/service utilization or trying to attract competitor customers or current non-users. Relevant market research activities for this strategy might include: Competitive intelligence studies Corporate positioning studies Segmentation studies 2. Market Development Market development means trying to increase sales of an organization's current products or services in new markets. Market development may also involve identifying new uses for an existing product or service. Relevant market research activities for this strategy might include: Acquisition studies Market assessment studies Market entry studies Market expansion studies 3. Product Development Product development means offering new or improved products or services in an organization's existing markets.
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