growth strategiesCritically assess whether issues related to risk and trust are the only factors that firms should consider when considering growth strategies.Paper instructions:Suggested ApproachConditions for success of market penetration (further growth within existing markets with existing products) should be included. Mention should be made that growth can also be achieved by attracting customers new to the market, by inducing greater volume of purchases by existing customers or by attracting customers away fromcompetitors.Market penetration will be a cost-effective growth strategy to the extent that conditions are to conducive to any or all of the above. For example:In growing markets new customers will be entering the market. Growth may reflect favourable economic, political or sociodemographic conditions, or the product?s early life-cycle stage. New customers are unlikely to have firmly established product loyalties andare easily ?captured? on entering the market. In growing markets, absolute sales volume may grow for all competitors and attempts to increase share by any one competitor may be less fiercely resisted than in stagnant markets.When competitors are (relatively weak). They may be small, under-resourced, high-cost etc. Increasing market share may be relatively easy especially where customer loyalty is low with brand switching common. A general condition would be that the company has a strong competitive advantage in this market.Factors related to the nature of the product: It may be easier to increase the rate of use where the product is consumable rather than durable (easier to persuade people to clean their teeth three times per day than to buy a second washing machine or replace it more often?).!
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