Discuss The Strategic Options AND OFFER Good examples Marketing Essay

Globalization is the system of interaction among the countries of the world to be able to develop the global current economic climate. Globalization identifies the integration of economics and societies all around the globe. It involves technical, economic, politics, and ethnic exchanges made possible largely by improvements in communication, travelling and infrastructure. http://hubpages. com/hub/Definition-of-Globalization

Integration in globalization is either negative or positive depends breaking down of trade barriers. Removing barriers can be beneficial for products that are essential to the overall economy growth. An example of imported recycleables is very expensive however the cost will be down if the supply will increase and can make cheaper to create the ultimate products for export.


Strategy is demonstrates decisions to offer particular products or services in the particular markets. The proper options for the checking out opportunities in the new founded market and existing product are good chance to use the supply resources. It is a tool in direction of the firm's objective in obtaining business success in the long term.


This is the concentration of an organization which products or service marketplaces to remain competitive and area to use. This is because market description is the domain of corporate and business level strategists, the duty for diversification, addition of new products or services to the prevailing product, also comes within the realm of corporate-level strategy.

A Strategic Alliance is a marriage between two or more parties to go after a couple of agreed after goals or even to meet a critical business need while staying independent organizations.

Businesses use strategic alliances to:

Achieve features of scale, range and speed

Increase market penetration

Enhance competitiveness in local and/or global markets

Enhance product development

Develop new business opportunities through new products and services

Expand market development

Increase exports


Create new businesses

Reduce costs.

3How to enter in Market

The best method of entry its broad selections are indirect exporting, immediate exporting, licencing, joint endeavors and direct investment.

A joint venture is an arrangement by several parties to create a single entity to attempt a certain task. Each one of the businesses has an collateral stake in the average person business and show revenues, expenditures and profits.

Joint ownership has certain disadvantages. The partners might disagree over investment, marketing, or other policies. One partner should reinvest revenue for progress, and the other partner should remove these earnings. Furthermore joint possession can hamper a multinational company from carrying out specific making and marketing insurance policies on a worldwide basis.

Licensing is a simple way for a manufacturer to be involved in International business. The licensor gets into an arrangement with a licensee in the foreign market, offering the to use a developing process trademarks, intellectual property and trade secrets are certified to an external firm. It's mainly used to make and sell a certain product. It's a lower risk way of extending the reach of product in comparison to building company manufacturing base and distribution reach.

Coca-cola can be an example of an international market by licensing bottlers surrounding the world.

Franchising is an excellent way of quickly rolling out a successful concept nationwide. Franchisees pays set fee and consent to ongoing payments so the process is economically risk-free for the company. However, downsides do exist, particularly with the increased loss of control over how franchisees run their franchise. It is thus an important form of vertical market integration. Potentially, the machine provides a highly effective blending of skill centralization and operational decentralization. It permits the franchise to market products under an extremely publicized brand and a well-proven group of procedures; this is a carefully developed and managed online marketing strategy.

Examples of franchisers are hotels brands i. e. Hilton, Visit to and Coco-cola.

Advantages of building strategic alliances

Provide companies with the opportunity to gain new capacity and expertise

Allow companies to type in related businesses or new geographic markets or gain new technical knowledge

access to better resources, including particular staff and technology

sharing of hazards with a endeavor partner

Disadvantages of proper alliances

It does take time and effort to create the right romance and partnering with another business can be challenging. Problems are likely to arise if:

There is an imbalance in levels of competence, investment or property brought into the venture by different partners.

Different ethnicities and management styles result in poor integration and co-operation.

The lovers don't provide enough authority and support in the first stages.

Success in a jv depends on comprehensive research and research of the aims.

Examples of tactical alliances companies

Sony-Ericsson is a jv by the Japanese gadgets company Sony Organization and the Swedish telecommunications company Ericsson to make mobile phones.

Virgin Mobile India Small is a cellular telephone service agency company which really is a jv between Tata Tele service and Richard Branson's Service Group. http://wiki. answers. com/Q/Examples_of_joint_ventures#ixzz1KAPliPOB

Product Strategies

Is the central emphasis of the marketing blend. It is does not meet the needs of the consumers, no amount of advertising, price trimming, or distribution will persuade these to buy. The total product, which is what the customer purchases, which likewise incorporate the program, the brand name, accessories, after sales service, the guarantee and instructions for use. Thus international product strategies and regulations should include the next aspects.

4Strategies Matrix

Ansoff Matrix has four strategies which an organization will be good to process for good foundation of the business future development. Ansoff matrix centered on the firm's present and potential products and market, customers by considering ways to develop through existing products and services and in existing market and new marketplaces. It is one of the best tools for the firms to develop market and product growth.

Market Penetration,

Product development,

Market Development


Diagram below show the Ansoff Matrix :

faculty. msb. edu/homak/homahelpsite/webhelp


Is a term that reveals how deeply something or service is becoming entrenched with a given consumer market. The amount of penetration is often measured by the quantity of sales that are made within the market itself, increasing sales team, increase syndication and advertising of products, more costs in marketing and advertising activities will results in increasing sales.

Market penetration can be considered in broader conditions, and become used as a means of determining a wider consumer foundation. Penetration expands the influence of the merchandise to new consumers and therefore escalates the sales and general proportion of the buyer market that the maker control buttons. http://www. wisegeek. com/what-is-market-penetration. htm

Market penetration looks for to attain four main aims:

The market show of current products should be taken care of, this will be performed by a mixture of competitive costing strategies, advertising, sales promotion and perhaps

Dominance of growth markets should be secured

Competitors should be travelling to restructure a mature market, promotion marketing campaign should be more hostile for the same pricing strategy should be made to make difficult to the competitors

Implemented loyalty program for the existing customers.

6Cases of Market Penetration


Recognizing the program as something can be a powerful market penetration tool, also assembling a services profile that now includes e-mail disaster recovery, spam/trojan filtering and archiving via its Concept one acquisition.


- Easyjet Air travel market was by offering plane tickets for the small distance cities.

- Southwest Air travel same as Easyjet were more profitable on working small distances

Pakistan State Oil penetrates in Pakistan market development from 40% to 65% in the length of time of 4 years by developing new shops.

Car Manufacturing

Toyota Motor Organization is the world's largest automobile maker by sales and production. Toyota and BMW good relationship in marketing to be able to retain and have high profile for his or her value customers. Toyota Electric motor Firm is the major conglomerates on earth. Toyota is continuing to grow to a big multinational company from where it started and expanded to different worldwide markets and countries.


HSBC Standard bank customers were very happy on internet banking that they can gain access to their online accounts 24hrs per day wherever these are on earth.


Airtel promoting its services to penetrate in the Indian market. It's the world's most effective growing industry, they have couple of joint endeavors with Alcatel in Indian, it is operates in 19 countries across South Asia, Africa and the Route Islands. Airtel is the fifth largest telecom operator in the world. http://en. wikipedia. org/wiki/Market_penetration

7Gain and Disadvantage of Market Penetration


One of the successful penetration is prices strategy can lead to large sales amounts/market shares and therefore lower costs per device. Penetration strategies are often used by businesses that require to consume extra resources. A penetration prices strategy may also promote complimentary and captive products. The main product may cost with a minimal mark-up to catch the attention of sales.


The most clear potential downside of market penetration is the probability of competing suppliers following suit by reducing their prices, May lead to a price conflict with a rival with the same strategy

The ramifications of economies of both size and experience business lead to lower production costs, which justify the utilization of penetration charges strategies to gain market talk about Low rates could be damaging to the identified brand value and also to the company reputation.

Another potential downside is the impact of the reduced price on the image of the offering, especially where buyers affiliate price with quality.

http://teacher2u. net/business/marketing/costing_strategy_penetration. asp


Market development is a marketing strategy targeted at increasing a company's market in order to widen the customer base for the purpose of providing more products.

This is an essential requirement of helping an organization grow. Small companies with limited marketing experience risk turning to consultants because of this, while experienced large companies have internal marketing departments that may be in charge of market development. It is a continuing part to do business for successful companies. Will help to grow your market by focusing on how your product is recognized in the marketplace and what regions of improvement is there.

Using the Starbucks example

This occurs when the market analyzing makes some kind of change, market development has took place over the past couple of years as individuals are becoming more health conscience. Preferences are moving toward different types of teas/drinks and individuals are demanding much healthier alternatives. These factors have aided to advertise development, with different franchises popping up, such as Argo tea, which become immediate competitors to Starbucks


Another way is always to give attention to the technology base used to supply existing products and identify other products needs, which customers may need to be produced using current facilities and understand how.

Here the business tries to build up new products or services and in so doing makes similar existing products obsolete unlike product development strategy which stretches a preexisting product's life pattern. There could be radical innovations where the company tries to displace existing products or solutions in an industry. Regarding incremental innovations, the firm tries to put focus on services or services that adjust the existing ones.

Apart from such radical improvements firms, also perform incremental inventions to distinguish their products. One of these, is Toyota's multi-utility vehicle Qualis. Although other Indian companies had similar products, Toyota, more effectively put together the styling an executive that resulted in increased demand for its product (a great reach compared) to Sumo,


As per Ansoff platform of market Development strategy

New Marketplaces may be different then expected ( especially in new geographic market with ethnical differences

Costly adjustments may be required

Examples of Market Development

Compact disc technology has almost replaced long participating in vinyl documents in the tracking industry, and hi-def television will probably replace regular tv set technology.

McDonald's has couple of new market segments in the wake of globalization with its existing products. This is as a result of nature of the business and products, McDonald; put in place its burgers which helps the progress of the market.

Nestle expanded the market for its product Milkmaid by advertising the new uses of the merchandise aggressively in India.

Chinese products developed new market because of their product worldwide

Toyota's multi-utility vehicle Qualis although there are same product in India, Toyota, better put together the styling an executive that led to increased demand for its product than Indian.

Close Up toothpaste was initially gel toothpaste that was clear with a red distinctive coloring, others pastes were white. The marketplace was dominated by Colgate which promised that it could fight tooth decay and bad breathing. Close up promised the dual advantage of being truly a toothpaste and mouthwash in one and thus delivered fresh breath and pearly white teeth.


This is a new product to be sold to our existing customers. Here we develop and innovate new product offerings to replace existing ones. Such products are then promoted to our existing customers. This often happens with the car markets where existing models are up to date or substituted and then promoted to existing customers.

http://www. marketingteacher. com/lesson-store/lesson-ansoff. html

Developing of services and offering to the prevailing market is product development strategy which need capital and time for you to implement. The business has to do a market survey in detailed if it's feasible to add new product in the current market.


Several things have to be checked in growing services in the business this is including,

Technology and Cost, by using most advanced technology the merchandise performance or the grade of products will be on highest degree of operation although Cost will be problem to the business in either purchasing the new equipments or conducting trainings.


Company products will be extended by producing different variations, presentation in new ways.

Service companies shorten time to advertise and improve customer service and quality.


Customers might be puzzled one of the existed and developed products, if the evaluation won't performed carefully, example is the new Coke, Customers liked the preference of the new Coke in the tastes exams conducted by Coca Cola, customers of the brand favoured basic Coke on the new product.

Another Types of Market Development

Google developed a new browser stainless for the existing internet user

McDonalds is always within the junk food industry, but frequently market segments new burgers


Diversification is a kind of corporate technique for an organization. It looks for to increase profitability through greater sales volume extracted from services and new marketplaces. Diversification may appear either at the business enterprise product level or at the organization level. Diversification is very important into related and unrelated areas.

http://www. coursework4you. co. uk/essays-and-dissertations/ansoff-analysis. php

Diversification related in the form of backward, forward, and horizontal integration.

Concentric diversification

This means that there surely is a technological similarity between the industries, meaning the firm can leverage its specialized know-how to get some advantage. For example, a corporation that manufactures professional adhesives might decide to diversify into adhesives to be sold via stores. The technology would be the same however the marketing effort would need to change.

The company will target to include more market share to launch a fresh product that helps the business earn more earnings. An example technological related in concentric diversification is Tomato ketchup and sauce to the existing brand processed items of food specialties.

Vertical diversification

This is when the company is nearer to the recycleables sources in creation, in another words is backward vertical integration strategy. An example of Avon's collection on makeup business. Avon pursued a backward form of vertical integration by joining the creation of cosmetics. In advance diversification occurs when Avon move nearer to the consumer in term of production stages.

Horizontal diversification, occurs whenever a company develops passions complementary to its current activities. For the company may combine its activities to add all facet of the value chain; design, manufacture, market and distribute. The business adds new products or services that are often technologically or commercially unrelated to current products but which could appeal to current customers. In the competitive environment, this form of diversification is suitable if the present customers are devoted to the present products and if the services have a good quality and are well marketed and priced. For example, Avon's move to market rings through its regular sales team involved marketing services through existing stations of distribution.

Conglomerate diversification (or lateral diversification)

The company marketplaces services or services that have no technological or commercial synergies with current products but that may charm to new groups of customers. The conglomerate diversification has very little marriage with the firm's current business. Therefore, the main reasons of implementing such a technique are first to improve the profitability and the flexibility of the company, and second to get a better reception in capital marketplaces as the company gets bigger. Although this strategy is very risky, it could also, if successful, provide increased growth and success.

For example a business whose central business is press services may diversify into provision of financial services.

Advantages of diversification strategy

Control market segments by guaranteeing sales and syndication. This can occur through a blend of linkages in the value chain. For instance where creation and distribution stations are merged, or in which a company uses its well-established brand names or corporate personal information to gain benefits in new markets

Take advantage of existing knowledge, knowledge and resources in the company when extending into new activities. This may result in transfer of skills, such as research and development knowledge and sharing of resources.

Provide better risk control through no longer being reliant on a single market

Spread risk by steering clear of having all eggs in a single basket

Disadvantages of diversification strategy

Adding bureaucratic difficulty. In addition to immediate financial costs, there may additional bureaucratic complexities necessitated by the necessity to organize and control core activities with additional activities.

Diversification through acquisition across nationwide boundaries may bring about the organisation suffering varying intricacies of the politics and legal requirements of the several countries in which the company has controlling passions.

Diversification also acquisition May bring about failure where there is a mismatch between center competencies Adding management costs.

Adding bureaucratic complexity. Furthermore to immediate financial costs, there may additional bureaucratic complexities necessitated by the need to organize and control core activities with additional activities.


Virgin Media transferred from music producing to moves and mobile phones

Walt Disney migrated from producing animated movies to theme park and vacation properties

Canon varied from a camera making company into producing totally new selection of office equipment


It holds true for the earth investment and business to go from nationwide and domestic markets to a worldwide environment. Globalisation removes all boundaries, causing firms to engage in business worldwide. Consequently companies have to deal with couple of problems if the management strategies will not help them to help make the correct choices and decisions. Proper options related to products and services which a firm may offer where markets are critical to the success of companies. The distinctions in strategic selections of the company can often be attributed to the kind of market where the company manages. Changes running a business environment play an essential role in the proper options an organisation may pursue over its future development. A couple of risks associated with all of the four proper options entailed in the Ansoff matrix. Market penetration is generally considered as a minimal risk strategy while diversification, on the other hand, is deemed as a higher risk expansion strategy as it includes moving simultaneously into services and new market segments. Diversification remains a favorite tactical option for businesses in today's competitive business market, in case the diversification strategy is consistent and well throughout, like the truth of IBM, significant advancements in success can be experienced.

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