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For ppt and more detail go to https://docs.google.com/presentation/d/14vJNtEqniJn-PneNGcOEVcAnJ3b3PGReTXyZXimk2Ds/present?slide=id.gfc18fce45f_0_273
What are corporate strategies?
Strategies used by corporations and business to develop products, systems and services. The success of the company relies heavily on the strategies it adopts.
What is a pioneering strategy?
Being first to market with a new, unique innovation - indicative of use of new materials, production processes or technology
What is an imitative strategy?
Developing products that are similar to an existing new product - reduces design and development time and therefore cost
What is market development?
Finding new applications for existing products, thereby opening up new markets
What is product development?
The creation of new, modified or updated products
What is market penetration?
Increasing sales to existing customers or finding new customers for an existing product
What is product diversification?
Increasing sales from new products or markets
What is corporate social responsibility?
A form of self-regulation for a company that centres on the development of goals related to three areas: economic, social and environmental
What is an example of a pioneering strategy?
James Dyson and his creation of bagless cyclone vacuum cleaner technology - dramatically different and unique innovation to products previously in the vacuum cleaner market.
What is reverse engineering?
A process that imitative manufacturers use to extract knowledge or deign information from products or systems and reproduce it. The process often involves disassembling something and analysing its components and workings in detail.
What is an example of an imitative strategy?
Action camera companies copying GoPro (who employed a pioneering strategy)
What is an example of market development?
Companies such as Nike have expanded into the leisure and comfort wear markets, rather than solely sticking to athletic wear used during exercise. 66% of Nike’s sales are purchases for fashion or active leisure wear, not professional sports.
What is an example of product development?
The iPhone: every year or so a new and updated iteration is released that has been developed in one way or another
What is an example of market penetration?
If there are 300 million people in a country and 65 million of them own cell phones, the market penetration of cell phones would be approximately 22%. A strategy that targeted market penetration would seek to increase this number.
What is an example of product diversification?
A household cleaning product could be repackaged and sold as a cleaning agent for cars. Same ingredient, different market.
What is an example of corporate social responsibility?
Companies such as airlines aiming to be carbon neutral or Starbucks moving to Fairtrade coffee.
What are the benefits of CSR?
The company benefits from a positive customer perception
Workers and employees can be paid fairly
Other companies benefit from a fair market
Employees are not discriminated against
The planet benefits from greener and more sustainable business practices
What is a hybrid approach?
Using one or more of the aforementioned strategies. There is no exact formula that enables a product to succeed in the market, which is why new products from inexperienced designers with low capital find it difficult to enter significant markets which are already served by large manufacturers or suppliers.
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