… point, customers are willing to forgo our quality for a model that is 30% less at retail.
In a strategic planning meeting, our technical development and marketing departments have presented three options for the company to pursue in order to maintain our leadership position in the market. Using the Ansoff Matrix for business evaluation, the team considered ways to:
· Improve our existing market penetration with existing products
· Improve our service to existing customers by developing related products
· Develop new markets for our existing products
· Diversify by developing new products for new markets (dictionary of business)
The first option is to …
… services, and require a cut back in advertising, which would, in the long term, adversely affect our position in the marketplace.
The second option is to invest in additional sales staff, and take our products to the marketplace through traditional sales channels, rather than relying on the e-commerce model. While this represents a significant expense, the company has seen the improved market position of the retailer Sharper Image by moving from a strictly e-business and catalogue model to developing business relationships with other existing retailers. For Sharper image, this has created expanding market penetration, and expanding revenues. For …