Question

LEGO is a late comer in the chainese market . Discuss how it can overcome this barrier?

Answer 1

A late comer in the market always has to overcome few barriers to establish itself in the market. Whereas the pioneer company in that sector has already established itself and enjoying a large market share. In such cases it become very difficult for the new company to expand business. But keeping few things in mind, late comers can overcome the barriers too.

*The widely spread and used way to penetrate any market is by offering product at lower price. By offering the same product at lower price will attract new customers for that product and will also induce old customers to switch for their product.

*Another very popular way of penetrating market is improvement and innovation of any product. This can be by incremental improvement of the product i.e., offering old product with enhanced version. Or simply by putting a product of whole new idea. This will help to drag customers towards the company and even a new set customer may join in the market share.

*To expand the business of a late comer company, it can find such areas with potential for business and the pioneer company have not entered there still. At those places a new company grow faster as it has to face less competition. So targetting geographical market can be an way to overcome the barrier for the late comer.

*Another way to develop and expand business is by creating a good and effective distribution channel. A good distribution channel may help the customers to access the products of the company. With these proper advertisement, marketing should also to be done. B2C way of distribution is the popular way now to have access to the customers.

*Another way of establishing a company maybe by customer targetting. Where the pioneer compant may offer the product for general basis, a new company may target the product for a specific age, specific gender, religion, or may be anything else. It helps to attract customers towards the company.

There are given few way to overcome the barriers for a late comer company.