Vertial Axis: Market (New vs Present)
Top left: Present product, present market - market penetration strategy for growth
Top right: Present Market, New product - Product development
Bottom Left: New Market, Present Product - Market development
Bottom right: Related & Unrelated Diversification
Options for related and unrelated diversification include
Vertical and horizontal integration
Mergersrs and acquisitions
Joint ventures, strategic alliances, consortia p69
Market Penetration - eg Dell (although this is probably prior to its entry into the mobile devices market). A risk-averse strategy based on avoiding
- a reliance on underdeveloped skills
- seeking new customers and markets
- acquiring and mastering new technology
- building new delivery and supply channels
- developing new promotional ability
- facing new competitors
This strategy includes consolidation, eg BA/Go/Easyjet in growing market, raising profile in a mature market, or turning an old technology into a niche (vinyl records).
Product and Market Development
These both aim for growth through extending organisastional scope.
Market Development
Taking your existing products into new markets. This can, eg, be firms moving outside their own geographic area such as wholesale wines into new geographic markets, or it can be where a firm purchases a rival or brand to allow it to enter a market where that brand is seen as dominant (rather than to enter a market with the products associated with the brand are different to the acquirer's own). Brand building (eg unilever's global brands) is a key telltale of this strategy.
Product development is expanding your product range to address new markets and opportunities. For example, different flavours of the established kitkat brand, or offering regional variations of products to suit local markets.KFC & McDonalds are often using this strategy to push new (often limited edition) products to try and capture sales in their mature market.
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