41. YOU HAVE NINE PRODUCT – MARKET STRATEGY OPTIONS INSIGHT In the start up and emerging stages of the entrepreneurial venture, the initial hot product fuels growth and the establishment of early market share. However, the challenge soon arrives to fuel the venture into rapid growth and at this stage there are a number of strategic options for the entrepreneur to consider. The venture can accelerate forward by: Expanding sales of existing product to the existing market – this is the market saturation objective Expanding sales of existing product to new markets – this is the market extension objective (for many entrepreneurs in Ireland, this is the ‘internationalisation, stage 1 growth strategy’). Creating new sales from new product to existing markets – this is market penetration objective Create new sales from new product in new markets – this is market extension objective (internationalisation, stage 2) STRATEGY MATRIX PRODUCTS CURRENT PRODUCT MODIFIED PRODUCT NEW PRODUCT CURRENT MARKET 1 2 3 SAME MARKET SEGMENT/ NEW TERRITORY 4 5 6 NEW MARKET SEGMENT/ NEW TERRITORY 7 8 9 MARKETS In broad terms, product-market strategy No.1 is lowest risk/lowest return for the venture as ultimately market saturation is reached. Product-market strategy No.9 on the other hand can be highest return and highest risk.