Strategic Management


Give recent examples of market penetration, market development, and product development



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Strategic Management ENG 1-25

Give recent examples of market penetration, market development, and product development.

Market presentation: For example, if there are 300 million people in a country and 65 million of them own cell phones, the market penetration of cell phones would be approximately 22%. In theory, there are still 235 million more potential customers for cell phones, or 78% of the population remains untapped.
Product development: Following are some common examples of product development. Packing wheat flour in retail bags for household consumption. Packing cooking oil in retail pouches for household consumption. Converting land line phones into wireless handsets for easy portability and full-time access to communication.
Market Development: is a growth strategy put in place by companies or organizations to introduce their product or solution to target audiences they have not yet reached or are not yet currently serving. As an example, let's say your software company has a new product offering available.


  1. Give recent examples of forward integration, backward integration, and horizontal integration.

Forward and Backward integration: An example of forward integration might be a clothing manufacturer that typically sells its clothes to retail department stores; instead, opens its own retail locations. Conversely, backward integration might involve the clothing manufacturer buying a textile company that produces the material for their clothing.
Horizontal integration: Facebook and Instagram. One of the most definitive examples of horizontal integration was Facebook's acquisition of Instagram in 2012 for a reported $1 billion. ... Instagram is now owned by Facebook but still operates independently as its own social media platform

  1. Give recent examples of related and unrelated diversification

Unrelated diversification: Why would a soft-drink company buy a movie studio? This is a good example of unrelated diversification, which occurs when a firm enters an industry that lacks any important similarities with the firm's existing industry or industries.

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