Market Expansion Strategy

Market Expansion Strategy

Definition: A market expansion strategy is a growth strategy here companies look towards selling their current products/services in a new market in their attempt to achieve higher growth.

Reasons for the expansion could be:

• Survival,
• Higher Profits,
• Increased Prestige,
• Economies Of Scale,
• Larger Market Share,
• Social Benefits, Etc.

The aim of any expansion strategy is to grow, irrespective of the risk and the hurdles coming in the way.

There are five expansion strategies a firm can follow to accomplish its business/market goals and objectives:

1. Expansion through Concentration
2. Expansion through Diversification
3. Expansion through Integration
4. Expansion through Cooperation
5. Expansion through Internationalization

In our 5 blog series, we will be talking about each expansion strategy and giving practical case studies where we have seen major companies implement this strategy.

Today,

MARKET EXPANSION USING “CONCENTRATION STRATEGY”

This when you as a business tries to increase your market share by competing successfully within a single industry, and this achieved by using one of the three (3) approaches or all. They are the:

1. Product Development,
2. Market Development And
3. Market Penetration.

PRODUCT DEVELOPMENT: Here, what businesses do is to create new products to serve their existing market. For example, a recent move by the Star Radler, launching a new product called “the red fruit variant” as a new product into its existing market to further expand its market.

MARKET DEVELOPMENT: This is when you as a business, take your existing product and try to sell them in new markets, and this new market can be taking your product into a new region, for example, burger kings recent announcement to open up in Nigeria

MARKET PENETRATION: This is the attempt of a business to get its existing customers to deeply integrate the usage of its products into their life/lifestyle

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