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.