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Essay / Research Paper Abstract
This 3 page paper looks at the different ways a fictitious firm can expand considering the 4 expansion strategies of Ansoff; penetration, product expansion, market expansion, or diversification making suggestions for each strategy.
Page Count:
3 pages (~225 words per page)
File: TS14_TEpaintex.rtf
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Unformatted sample text from the term paper:
best choice may be made. Ansoff has suggested that there are four main ways in which a company can expand, these depend
on two variables, whether it is the desire to develop new products or new customers. Therefore, new sales can be made by penetration, product expansion, market expansion, or diversification.
Penetration is the strategy of using the same products and the same market and just increasing sales to that market, this can be
a very difficult strategy. The firm is operational in only a small area, it is possible that they are not supplying all of the paint needs to that existing market,
there will be competitors that are gaining market share, many of whom may have higher marketing budgets and more outlets. In order to sell more of the same products to
the same customers there will need to be increased loyalty gained, this may be achieved though the use of a loyalty reward program.
There is also the possibility that although the paint is sold to the existing target market though the firms own retail outlets, that the existing target market also goes
shopping in other stores for paint,. As such the firm should also consider selling the paint to resellers in the same area. There are some dangers of cannibalization in this
strategy, but it would increase exposure to the existing target market Product expansion looks to keep the same market of customers but to
increase sales to them by offering more products. There are a number of approaches which may be used here. This could include introducing new ranges of paint, such as different
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