Product Development and Market Entry Decisions

Question: Discuss about the Product Development and Market Entry Decisions. Answer: Introduction Market expansion strategy is considered as one of the most vital strategies prevailing within the business of the firm that helps in generating the market expansion of the firm. narket research is necessary part of planning as it allows companies to find such vital information as what the main features of the market are and what potential customers want. There are several tools designed to help businesses develop successful marketing plans and use them in order to grow. Product market expansion grid was specified by the Ansoffs matrix (Reardon, Coe and Miller 2015). This market expansion grid is quite valuable for planning the expansion of the company. This analysis helps in analysing the projected path in which the organization would find it beneficial to expand its sales and business prospects. The aim of this report is to analyse the marketing strategies of Amazon Australia by framing a product market penetration grid strategy for the firm. The analysis focuses on the achieving the aims of the firms that would be beneficial for progressing the future prospect of the firm. The following report has contains a background of the firm that would introduce the abilities and achievements of the firm. It is followed by a brief introduction to the product market penetration strategy (Prior and Bowman 2014). Every strategy has been reciprocated in the report on the basis of the Amazon Australia. Background of the Company Amazon is considered as one of the most developed and expanded electronic commerce cloud computing company. This organization has been successful in expanding its business throughout the world, where it helps in accessing its customers with all kind of products. It has been successful in being one of the largest electronic commerce organizations with its headquarters in United States of America. Along with the retailing, business the organization has also been successful in producing their own branch of products such as kindle, Fire tablet, e readers, fire TV and echo. Amazon is considered as the worlds largest provider of cloud infrastructure that ascertains low end products in the market (Guze et al. 2014). The organization has been operating in 15 countries currently. This report would focus the market operations of Amazon restricted only to Australia. Market Expansion Grid Product market expansion grid was specified by the ansoffs matrix. This market expansion grid i S quite valuable for planning the expansion of the company. This analysis helps in analysing the projected path in which the organization would find it beneficial to expand its sales and business prospects. Various strategies together in this aspects are taken into consideration. In order to analyse the product market expansion grid, two factors are taken into consideration (De Waal 2016). These factors are the product and the market. The product of the firm could be A NEW INNOVATION OF THE ROGANZIATION OR AN EXISTING ONE. THE chosen market of the fri could also be either a new territory to be entered by the referred company or the existing one. The grid for market expansion has been focussing on these two factors that accounts to be most prior for a organization (Mukherjee et al. 2016). The strategies that are analysed using this framework are : Market development strategy Diversification strategy Market penetration strategy Product development strategy Among the four strategies listed above, market penetration strategy deals with the inclusion of a current existing product in the current market of the firm. Product development strategy analyse the strategies related to the introduction of new products in current existing market. Market development strategy deals with the introduction of the current products in the new markets for the firm and the last strategy, diversification strategy, deals with the introduction of new products in new markets (Grant 2016). The focus of this report is to analyse the product market expansion grid strategy to be analysed for Amazon Australia. Market Penetration Strategy Market penetration strategy is considered as an important market strategy that is analysed by the firms. It helps in framing the strategies that would help in raising the sales of the products that exist in the market, yet has not been successful in generating much sales in the market. They do not have the capability of attaining the demand of the consumers towards themselves. Hence, such strategies are framed that would be efficient enough to attract the demand towards themselves and generate revenue for the firm. Various ways are related to the adoption of such strategies that would be efficient enough to achieve the aim of the firm in relation to the demand for existing products in existing markets (Bertay, Demirg-Kunt and Huizinga 2013). One of the easiest way is to attract the customers of the firm by generating the advantages of the product, secondly it can also be done by attract the consumers of the rivals prevailing in the market. Amazon Australia has been quite popular in maintaining their strategies to thereby acquire the market power in the economy. to further stem their dominance i the country, the organization must enrol itself into certain websites that compare the prices of the products online. The organization must take the initiative of selling not only books, films and tv shows, yet it must also introduce its segments in launching new products on the retail segment of the market (Eckard et al. 2015). It must analyse its advantages in merging with certain brands that would sell their products only online through the use of Amazon website. this would help in attracting the consumers towards the organization and thereby increasing the sales and revenue generated in the long run. Market Development Strategy Market development strategy are helpful in expanding the market of the organization with respect to the adapting of the existing product of the organization n new markets. This helps in expanding the base of the firm and raising their market power by introducing their products in new forms of markets. Helps in generating sales and revenue of the firm. Market development plan could be done by changing the products characteristics in order to satisfy the demand of the new market consumers. There are several ways of entering the new market which may include geographical expansions (Dyer and Song 2015). Amazon Australia offers favourable market development terms by implementing its expansion in new geographies. market development strategies would enable the firm to introduce their existing products in new markets. this would help them in capturing new market share. Amazing Australia must aim at expanding their business all over the country as per their ability to pay. Amazon must introduce its major trends among the competitors of the new markets such as own produced books and electronic apps for reading books (Darkow 2015). Product Development Strategy Product development strategy is a useful strategy that helps in introducing a new product in the existing market. As per the change in the consumption style and demands of the consumer, it is quite beneficial for the organization to pertain flexibility in its systems. This would help the organization in adhering to the current needs of the consumers and raising its sales and revenue framework. The products that would be launched in the market, could be new or modifications of the existing products in the same market (Yuen 2014). The organization might also attract the consumers of the rival companies by implementing the introduction of certain products that the competitors have not been able to innovate so far. By doing so, the benefits to the organization would be quite appreciative in nature along with the provision of stability in the market. Product development has been considered as one of the major activities that have been undertaken by Amazon since its operational period. the organization has been successful in introducing certain products such as e-book reader Kindle, along with the tablet, Kindle Fire, designed and manufactured by Amazon itself to rival other tablets in the markets, mainly the iPad ofApple.these products must be promoted in the market of australia, where people have a wage rate. they spend more money in attaining the products of Apple, hence, amazon could be successful in providing the market consumers of the similar product, yet with cost advantageous factors associated. Hence, the organization would be efficient in analysing the prospects of the market and establishing stability in the country (Kang and Montoya 2014). Diversification strategy Diversification strategy is destined for the companies that are planning on the launch of new products into the market. Diversification can be achieved in the market in two ways concentric nd conglomerate. Concentric diversification would deal wit the strategies in which the company would operate in the related market and launch the products that would have similar characteristic with the products already being produced. This would provide the incentive for the fir to use the existing resources that are already present in the market. Conglomerate diversification is for the companies, which produce new products that are unrelated to the existing ones in the market (Bowen, Baker and Powell 2015). This strategy provides them with the opportunity to introduce a new as pectin the market. It accesses a greater associated risk with itself, yet, it carries a large proportion of profit along with it after being successful in launching the new product. Diversifying the products of the firm ha s to undergo certain risks and costs associated, yet it is quite beneficial in attracting the customer who were most awaited for the launch of such a product. Amazon takes the relateddiversification approach in which strategy development takes place beyond current products and markets, but within the capabilities orvalue network of the organisation.The firm has been flexibly promoting its new products and innovations throughout the markets. The Amazon must establish long term relationships with various strategic partners in Australia that would help them in establishing stable search generated engines. Amazon must analyse the application of effective economies of scope towards its resources. The company has a strong online base, which helps the firm in venturing into new markets through innovative online software that the chairman of the company has created. In order to formulate new markets with new products, the risk must be taken by such an appropriate company like Amazon (Weiss, Schneider and Lebid 2015). Amazon has the ability to capture new markets of gaming, books and music. It would be benefitted by the decisions taken due to its s trong base and abilities. Conclusion Market planning and penetration strategies are considered as an important aspect for organizations to expand their market share. Researching the criteria of the market would provide the organization with the initiatives to expansion the market. Amazon Australia has been quite efficient and appropriate in the years so far to analyse its business in the country by exploring new capabilities nd innovations in various sectors oif the country. The organization must enhance its market penetration, product diversified, market development and product development in the country that would help them in framing the efficient marketing framework. 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