MGT301 Assignments 1 Solution Spring 2020
Requirement:
After reading the above case, which of the below product/market expansion grid strategy the clothing industry is following during this pandemic and what benefits they could achieve through it? Support your discussion with logical arguments1. Market Penetration
2. Product Development
3. Market Development
4. Diversification
*Note: You are required to select only one strategy and mention at least 3 benefits to support your answer. The definitions of strategies are not required.
Advantages of market penetration strategies include quick diffusion and adoption of your product in the marketplace, incentives to be efficient, discouragement of competition, and creation of goodwill.Market penetration:
Increase sales for the organizations by growing the customer base.
Increased use base which assures growth in future for the organization.
New companies get to establish their products and make themselves heard in the market.
If the product is of good quality, then the strategy of price presentation definitely helps customers to use a better product at a reasonable price.
It may cause quick diffusion and adoption of your product in the market. If your product is cheap enough and of similar quality to competing products, it should spread out into the market and be purchased by customers quickly.
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