Question

What different strategic growth opportunities can retailers pursue?

ANSWER THE FOLLOWING QUESTION NOT LESS THAN 100 WORDS

Answer 1

Listed below are the 4 types of growth opportunities that a retailer can pursue :

1. Market Penetration : A market penetration is referred to when a retail company penetrates its existing market by bringing attractive offers to existing product range. Retailers try to attract the customers who are unwilling to buy the products without any additional benefits on the products. This helps in having a competetive edge in the market and increase or broader the existing customer base.

2. Market Expansion : Market expansion refers to increasing the market and customer base by selling the same product line. In this strategy there is no or negligible alteration in the new market. Market expansion means the merchandise remains almost the same but customer base expands. Market expansion can be done by developing different price policies for different customer groups and by using new means of distribution and selling.

3. Format Development : Format development refers to offering a new retail format by bringing in some sort of new retail mix to the same target market. For eg. Online Websites and Ecommerce sites selling more products in addition to the existing. In format development retailers offer new goods and services in addition to their regular merchandise that comparatively involves less investment.

4. Diversification : A diversification opportunity is when a retailer introduces a new retail format directed toward a market segment which has not been tapped yet. Diversification opportunity involves a substantial change in the business definition

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