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Market Development Approach
This is a part of intensive strategy. This type of intensive strategy involves launching of a company’s existing goods in new markets of a new geographical area. It means an organisation do not modify their present commodity or does not create any new item but simply adds new markets by entering new geographical places.
In recent times, this approach is employed rapidly on international base. Here, multinational companies (MNC) by gaining access to new markets in new countries and regions in the world increase market share through the existing goods. Airline industry should also consider adequate market development approach in international market for surviving. Our Market Development assignment help provides a more profound analysis on this topic.
Specific Guidelines Organizations Follow for Effective Outcome
There are particular situations where this market strategy is more effective. To have the effective outcome, some essential guidelines are followed by companies’ when pursuing this approach. The guidelines are:
- Multiple new channels of distribution should be taken into consideration which is reliable, good quality and inexpensive
- A company in their current operations is successful
- When untapped and unsaturated markets are available for entering
- Capital and human resources are crucial factors for handling the organisation’s expanding operations
- The situation when the capacity of production is excessively high
- Conversion of a basic industry into a global one
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