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Course Hero 4 - market: 1. Expand distribution channels. 2....

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4. What is the Product Market Expansion Grid? Corporate management’s first course of action should be a review of opportunities for improving existing businesses. One useful framework for detecting new intensive growth opportunities is called a “product-market expansion grid”. Ian Ansoff has proposed a useful framework called the product/market expansion grid for detecting new intensive growth opportunities. There are four strategies, one for each of the quadrants: Market Penetration Strategy When the product is in the current market, it can still grow. There are three major approaches to increasing current product's market share: 1. Encourage current customers to buy more. 2. Attract competitor's customers. 3. Convince non-users to use the product. Market-Development Strategy When the current product is launched in a new market, there are three approaches to develop the
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Unformatted text preview: market: 1. Expand distribution channels. 2. Sell in new locations. 3. Identify the potential users. Product-Development Strategy When a new product is launched in the current market, the intensive growth strategies could be to: 1. Develop new features. 2. Develop different quality levels. 3. Improve the technology. Diversification When a new product is launched in a new market, diversification makes good sense as better opportunities are found outside the present business. The diversification strategies are of three types: 1. Concentric Diversification Strategy: Develop new products with the earlier technology for new segments 2. Conglomerate Diversification Strategy: Develop new products for new markets. 3. Horizontal Diversification Strategy: Develop new products with new technology for old customers....
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This note was uploaded on 08/29/2011 for the course ECON 530 taught by Professor Smith during the Spring '11 term at Berklee.

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Course Hero 4 - market: 1. Expand distribution channels. 2....

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