Market penetration is the safest of the four options. Here, the company should focus on expanding sales of its existing product in its existing market.
CIC can develop new strategies, to encourage more people to choose the company's product or use more of it. As CIC is in the agricultural industry, where consumers purchasing it uses the product in the kitchen, CIC could develop new strategies such as including kitchen utensils for free e.g.: spoons, cups etc. that would draw the customers attention into purchasing the product as they could save money from purchasing those extra utensils. Another strategy CIC could use is by adding extra product into their packaging e.g.: adding 200g extra to their 2kg package of rice and mentioning "extra 10%" in the packaging to make consumers aware of the extra included. More of the product with the same prices of the competitors would draw attention from buyers to purchase the product.(Mindtools.com, 2016)
Product development is slightly more risky, because you're introducing a new product into your existing market.
Here, the company is selling different products to the same people, who are already aware and have tried previous products of the company. When a product is there for a long time in the market, people might get bored of it, perhaps changing the packaging of the product by repackaging it with a more attractive package could change the customer's interest. Another technique CIC could use is by extending its product by producing in different variants such as producing Yogurts in different flavors instead of one, which allows customers to make choices within the same company's products.
Market development, you're putting an existing product into an entirely new market. You can do this by finding a new use for the product, or by adding new features or benefits to it.
There are many methods that CIC can use when it comes to market development. As CIC distributes its products to customers via agents and intermediaries, CIC could come up with new methods such as by having direct sales and by having Online sales to reach wider markets. When it comes to online sales, CIC could develop its own Smart phone app to enable customers to purchase products and get the goods delivered to their door step. With the amount of people having smart phones today with the touch of a screen, consumers can expect their goods to be delivered without any hassle. This way CIC could grab the market filled with lazy people and people who are too busy to walk up to a supermarket to purchase anything.
Diversification is the riskiest of the four options, because you're introducing a new, unproven product into an entirely new market.
This strategy is risky: there's often little scope for using existing expertise or for achieving economies of scale, because you are trying to sell completely different products or services to different customers. E.g. CIC could start manufacturing clay pots and sell it to the people in India.
Directional Policy Matrix
List of Industry Attractiveness
The GE / McKinsey matrix is a model used to assess the strength of a strategic business unit (SBU) of a corporation. It analyzes market attractiveness and competitive strength to determine the overall strength of a SBU.
The GE matrix consists of two axis, the x axis which represents competitive strength of the business unit and y axis which represents the industry attractiveness of that unit.
In order for a business to use the GE matrix, the business should first consider or list down the factors under each axis the competitive strength of a business unit and for the industry attractiveness.
Basically what the industry attractiveness is, is the market attractiveness which deals with certain external factors of the business. There are several factors under industry attractiveness, but CIC should choose only the ones related to its industry. Factors under industry attractiveness include market size, market growth rate, and market profitability, industry structure, market segmentation and trend of prices. (Jurevicius, 2016)
Competitive strength focuses on internal factors and the ability of the SBU to overcome specific issues with the market and competitors. Internal
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