Intensive Strategies

Roque, Kathryn G.                                                Prof. Dante Narciso

Strategic Management

Intensive Strategies

        The aim of intensive strategies is to broaden the market share and to increase the profit by making the existing products more effective and by introducing new and various sets of products in order to increase the market share too. Various set of strategies are applied by all the organizations. Intensive strategies play an important role in increasing the revenue as well as sales of any organization. Marketers try to adopt these strategies and then apply them by effective ways in order to gain maximum outcomes.

Types of Intensive Strategies

1. Market Penetration

Market penetration deals with enhancing the share of market by effective and innovative strategies in order to make the present product more effective and attractive.

It makes sense when:

1. Current Markets are not saturated, and the potential new for market share is deemed to exist.
2. Usage rate of current customers could be increased.
3. The relationship between sales and marketing expenditures has been high in the present market--- and still is.

Apple uses market penetration as its second most significant intensive strategy for growth. Market penetration involves gaining a larger market share by selling more of the company’s current products. For example, Apple applies this intensive strategy by selling more iPhones and iPads to its current target markets. In particular, the firm achieves more sales by adding more authorized sellers in its current markets. This approach is important in penetrating markets where Apple has not yet achieved a significant position. Also, under the market penetration intensive growth strategy, Apple uses promotion through various websites and media outlets. For example, advertisements encourage more people to buy Apple products. This intensive growth strategy agrees with Apple’s broad differentiation generic strategy because it addresses the need to broadly capture the market. By selling more current products to more customers in current markets, this intensive strategy enables Apple to reach customers in all market segments.

1. Market Development

Market development deals with adding products in different geographic areas. All these above mentioned strategies deals with increasing the revenues as well as sales by adding value to the existing products and by enhancing the efficiency.

In general, an organization would be well poised to engage in market development when:

1. New distribution channels of distribution are available, inexpensive, and of good quality.
2. An organization is already very successful in its current markets.
3. Untapped markets exist.

Apple uses product development as its main intensive strategy for growth. Product development requires that the company must offer attractive products to grow its market share and performance. Apple implements this intensive growth strategy through innovation in its research and development processes. The company’s mission statement and vision statement specify product development. Through this intensive growth strategy, Apple views innovation as a critical success factor. For example, the company continues to innovate through products like iPhone, iPad, and Apple Watch. In this intensive growth strategy, the firm also develops new products for the mobile market. Apple grows because new products and models allow the firm to generate more revenues. This intensive growth strategy agrees with the company’s generic strategy by focusing on unique Apple products that can increase profits.

1. Product Development

Product development deals with increasing the sales as well as revenues by enhancing the quality of existing products. The quality of existing products can be easily enhanced by adding different flavors in it.

This strategy could be an effective choice when:

1. An organization has successful products that are in the maturity stage of the product life cycle.
2. An organization competes in an industry that is characterized by rapid technological developments.
3. Major competitors offer better-quality products at comparable prices.
4. When an organization has especially strong research and development capabilities.

Apple uses market development as the least significant of its intensive strategies for growth. Market development involves creating new markets for new products or entering entirely new markets. This intensive growth strategy is similar to market penetration, but market development focuses on establishing presence in new markets. Apple applies this intensive growth strategy by authorizing new sellers in markets where the company does not have any presence yet. Thus, this intensive strategy applies mainly in developing markets. Also, Apple implements the market development intensive growth strategy through novel products. For example, the company innovates to offer goods like Apple Watch, which is an entirely new product line for the firm. Through Apple Watch, the company develops its reach in the smartwatch market. This intensive growth strategy agrees with Apple’s generic strategy of broad differentiation by expanding the company’s market reach. Such generic strategy requires that unique products should be offered to different market segments, which the company reaches through market development.

Developing new market is a challenging task that is accomplished by marketers when they follow various strategies by innovative ways. The best thing to have development in your product is to make it different from the competitors. If you effectively make your product different from your competitors, then the success is yours. Enhancement, innovation, effectiveness and efficiency are some of the basic as well as important tools that should be considered when you are developing or re engineering your product. These elements will make your product or service different from others and will be the best one to cater the needs and demands of your consumers. Fulfilling needs and demands of your consumers is the foremost duty and it can only be accomplished by providing something unique and different to them.