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youtube/watch?v=HZ26tYbN8GU Honda product growth

6.02 Exemplify how companies expand product-markets and the screening process used for product-markets. http:// www.youtube.com/watch?v=HZ26tYbN8GU Honda product growth http:// www.youtube.com/watch?v=WqKi_9p1zks Honda song. Product-market.

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youtube/watch?v=HZ26tYbN8GU Honda product growth

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  1. 6.02 Exemplify how companies expand product-markets and the screening process used for product-markets. http://www.youtube.com/watch?v=HZ26tYbN8GU Honda product growth http://www.youtube.com/watch?v=WqKi_9p1zks Honda song

  2. Product-market A product market identifies a single product developed for a single market. This is the smallest type of market unit for which businesses develop strategies. Example: Acura Legend was developed by Honda for the luxury auto market—a single product for one market.

  3. Strategies for expansion into new product-markets New market Product expansion New technology

  4. New market New market: a market in which the company/product has no presence Must choose whether to enter new international markets, or… …whether to enter new markets in their own country

  5. Product expansion Product expansion: making new or different products—might include: Making component parts for other manufacturers Making new products similar to those already being produced Making altogether new products Will the company modify the product for a new country or keep it the same? Example: McDonalds does not modify its stores or operations in foreign countries, but they do modify the menu for local tastes Modifying the product costs more, but without modifications local consumers might not buy the product

  6. New technology New technology: using expertise to design more advanced products: In-house expertise allows companies to develop new products related to those already in production New technology can lower production costs New technology can improve the quality and performance of a product New intellectual property can be a barrier against competition Innovation can set a company apart from competition New Technology http://www.youtube.com/watch?v=LPlZ_AqCvGw http://www.youtube.com/watch?v=I_s-Im5aOXU http://www.youtube.com/watch?v=Kg4nHNQrKrs

  7. Screening product-marketsMarket factors Is the market large enough with a high growth rate? Does the company have experience in the market? Does the market need the product? Can the market pay for the product?

  8. Screening product-marketsCompetitive factors Does the product have a competitive advantage for the proposed product-market?

  9. Screening product-marketsStrategic factors Lead time: the amount of time a company is ahead of its competition in pursuing a new strategy. More time enables a company to develop brand recognition, distribution networks, and customer loyalty If competitors have a long lead time it will cost more to catch up Brand recognition: how well-recognized is the product’s name in the proposed market? Can the company benefit from economies of scale which will provide a cost advantage? Does the company have intellectual property advantages that will build barriers to competition?

  10. Selecting attractive countries Expanding product-markets into new countries requires an evaluation of how attractive the country is for new opportunities. What are the risks of doing business in this country? What types of barriers will the company face? What resources are available to help reach the target markets?

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