MGMT 4P90 Chapter 8: MGMT 4P90 Chapter 8 Textbook Notes

• School: Brock University
• Department: Business - Management
• Course: MGMT 4P90
• Professor: Trish Ruebottom

Document Summary

For many firms, concentration strategies are very sensible. These strategies involve trying to compete successfully only within a single industry. Mcdonald"s, starbucks, and subway are three firms that have relied heavily on concentration strategies to become dominant players. Market penetration t(cid:396)(cid:455)i(cid:374)g to gai(cid:374) additio(cid:374)al sha(cid:396)e of a fi(cid:396)(cid:373)"s e(cid:454)isti(cid:374)g (cid:373)a(cid:396)kets usi(cid:374)g e(cid:454)isti(cid:374)g products. Market development involves taking existing products and trying to sell them within new markets. One way to reach a new market is to enter a new retail channel. Starbucks, for example, has stepped beyond selling coffee beans only in its stores and now sells beans in grocery stores. This enables starbucks to reach consumers that do not visit its coffeehouses. Product development involves creating new products to serve existing markets. Rather than rely on their own efforts, some firms try to expand their presence in an industry by acquiring or merging with one of their rivals. This strategic move is known as horizontal integration.