Question

Define Nasper's market penetration in connection with strategy formulation.

Answer 1

Market penetration refers to the expansion of a product's sales by introducing a product in a new market. It helps the company sell its product to other areas and helps a company increase its profits. In order to expand and promote its product, a company adopts various strategies to achieve this.

Naspers is a company that deals in internet communication and various other online fields such as entertainment, games, and so on. The company started its operation in 1915 in South Africa, as a publishing company and since then, it is expanding its business in other fields. The strategies adopted by Naspers in expanding its business and making its services to introduce in new markets are:-

1) Investing:- The company started expanding its business by investing in different firms and provide them the platform to connect with the world. This company helps the other companies in introducing their products and services in different markets of the world.

2)Acquiring Different Companies:- The company expand its business by acquiring different companies in other countries and providing their services to the people of that country. The company usually helps Startups in introducing their new product by connecting them with the rest of the world.

3) Growing:- The company grows its business by helping other companies to grow. The company invests in small business and startups and help them in introducing their products with other countries.