Please provide short analysis of this article with at least one question or concern.
First, elaborate on one organization that exemplifies Market Penetration or Market Development! Second, Chapter 8 highlights at least one failure with respect to unrelated diversification/implementation, offer another example?
Market Penetration: To strengthen a company's position in an existing market (Mack, 2015). It can also mean by gaining shares in an existing market by using existing products (Strategic Management, 2014). The strategy of it is to help improve customer satisfaction; keeping existing customers while developing new customers.
Market Development: Taking existing products and producing them in new markets (Strategic Management, 2014). A company is branching out into new areas for growing their business.
An example of these two strategies is Starbucks Coffee. Their strategy to gain new customers and keep the same customers is to sell their products in different stores other than their own. Starbucks advertises for all types of customers, but attract the coffee lovers. Market penetration for Starbucks involves the company running promotions, such as half off frappachinos on certain days. Their example for market development would be to sell their products in grocery stores and other types of businesses.
One company failure was Blockbuster. They were not able to keep up with the changing of market diversification. Since the world is becoming more digital Blockbuster could not keep up because people did not want to rent DVD's but rather stream videos, such as Netflix (Craig, 2015). It is important for companies to follow and keep up with the market and different trends that are happening. Failures of not being knowledgeable enough and not watching the market can result in the business failing and losing money.