As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed. Already registered? Log in here for access.
Growth Strategies in Business
How to Create a Market Penetration Strategy and Make the Market Play by Your Rules
Successful leaders understand that if their organization is to grow in the long term, they can't stick with a "business as usual" mindset, even when things are going well. They need to find new ways to increase profits and reach new customers. There are numerous options available, such as developing new products or opening up new markets, but how do you know which one will work best for your organization? This is where you can use an approach like the Ansoff Matrix to think about the potential risks of each option, and to help you devise the most suitable plan for your situation.
Business Growth strategies: Market penetration, integrative growth strategy and diversification
As soon as a company enters a new market, it strives for market penetration. The main objective behind the market penetration strategy is to launch a product , enter the market as swiftly as possible and finally, capture a sizeable market share. Market penetration is also, sometimes used as a measure to know whether a product is doing well in the market or not.
Growing the business by penetrating its market more thoroughly is typically the first step a business takes to grow. Wise entrepreneurs carefully assess what untapped sales remain. If answers to the questions in Market Penetration Opportunities indicate that growth opportunities still exist via market penetration, identify ways to eliminate internal barriers to sales and increase promotional and sales efforts to sell more to current customers or to sell to new customers in your current target markets.