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HOW COMPANIES CAN EXPAND GLOBALLY

 Product / Market Growth Matrix 





  1. Market Penetration 

In this situation, the company try to boost their sales by offering extra discounts, sales offers,                promotion activities and designing their stores. Basically, they offer the sames products to the                same type of market / consumer. 
Example, Starbucks redesign its store layout widely in 2008 to boost their sales. Another example would be Wind Turbine Manufacturing firm in Canada successfully reduce their demand shortfall by implementing market penetration strategy. More info


    2.    Product Development strategy 

Company try to increase their prouct offering range more wider in their existing market. Therefore, company comes out with new product for their existing market. By this the company not only able to wider their product range but also can increase their profit margin. 
Example, Ikea have total of 9,500 types of products and launched 2,500 new products annually. In other hand, Samsung introduce its Galaxy Tab in 2010 and currently the company produce more than 2 types of Galaxy Tab with different features in it. List of Galaxy Tab


    3.    Market development strategy 

In this situation, the company is concentrated to enlarge their firm operation to more wider market. Therefore, company would try to penetrate into a new market by offering their existing product or service. Probably company try to develop a new market by offering their same product / service. Company adopt this strategy due to two main reason which is company either fully optimize their market or face high competition in market they currently serve. 
Example, 7Eleven carry out market development strategy by starting their first outlet operations in 2004 at India. But bear in mind that, appropriate strategy and market understanding is needed. If company lack any of them then the new market ventured by the company would turn out sour. 7Eleven fail, Starbucks
        

    4.    Diversification strategy 

Company would try to introduce a new product offerings behalf of their organisation to a new market. In this situation, the company try to introduce some sort of innovations in their product or service offerings to their cilent or consumer. In this case, it is not neccessary for company to begin their company at a new region or country that they haven't ventured before. If a company provide another product which is differ than its own main offerings is also consider as diversification strategy.
Let say, McDonald's introduce McCafรจ in 1993 say is consider as diversification strategy done by McDonald's whereby the company offer new product (coffee) to a new type of consumer. For example, Virgin groups failed to implement this strategy through its product called Virgin Cola. 


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