Market Development : A Strategy For Growth Essay
This strategy; o Increase in the number of customers/travellers o Provides scope for new product in future.
However, this strategy will cost more in terms of time and capital because the product has to be addressed to entirely new market, and therefore, it needs to go through an introduction stage for the entirely new potential costumers/travellers. The organisation may have to face the strong completion from the existing rivals in the new market. The rivals in the existing (old) market can capitalise on the situation because there is always possibility of losing concentration on existing (old) market where product was introduced and marketed in its beginning. The existing customers/travellers prefer to choose to rivals for the products and services. On other hand organisation’s future can be in danger, if new market doesn’t give estimated outcomes. The returns on the investment made to develop of a new sell will be sluggish.
For instance, British Airways may introduce package of ski holidays in Switzerland in Indian market where the customers/travellers will have a very new concept from existing organisation. This package will be new for Indian customers as they are not too keen and use to of this type of holidays.
3. Product development: This strategy of growth…