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Understanding the Market — Entrepreneurship STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipUnderstanding the Market5 Marks
Question
What is intensive expansion. Explain with help of an example?
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Answer

Intensive expansion means the enterprise increase the sales of its existing product by enlarging the existing markets. A profit market expansion can assume the form of:
  1. Penetration Strategies: A strategy to grow by encouraging existing customers to buy more of the firm's current product is said to be penetrating strategy. Here, the enterprise strives to increase the sale of the current products in the current markets.
  2. Market Development Strategy: Market development strategies involve selling the firm's existing products to new groups of customers. It implies exploring new markets for the existing product – both nationally, internationally.
  3. Product Development Strategies: It implies developing or modifying the existing product to meet the requirement of the customers. Product development strategies for growth involve developing and selling new products to people who are already purchasing the firm's existing products, i.e., management can consider new product possibilities in the same existing markets by:
  1. Adding new features: a fairness cream with sunscreen component.
  2. Different Quality Levies: Surf excel, Surf Ultra, etc.
  3. Alternative Technology: CDMA and GPRS mobiles.

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