We as individuals encounter crucial decision moments in our life. As you move to primary, secondary, 6th form, uni and taking different jobs.
As a company, we face different cycles, series, from the idea of the business, startup capital, and creating the first product.
One of the most fantastic tools that business use when deciding about the new turn in terms of marketing strategy is the Boston matrix.
The tool gives us the chance to see what is the potential of our product. Is our product still in demand from the actual customers? Can, we expand the look-alike audience among the same target market. If yes, let's squizz the lemon; that will be called market penetration.
If no. Hmm. We have two options: find a new market and a segment interested in our product. For example, if we sell cereal bars and the product declines in phase in our county, we could start selling the product in a different area, market development.
Or we could try to make a different product, chocolate bar to sell to our current customers, that will be product development.
We had market penetration, market development and product development. The fourth and most risky one is to create the chocolate bar and sell it in a different count, a new product in a new market. It is the most dangerous because you do not know the outcome and even the market very well.
Richard Branson is a genius entrepreneur who can develop and sell products using this strategy. Just look at the company's portfolio that he is operating: Virgin cola ( Soft drinks), Virgin Radio, Virgin Airlines, Virgin mobiles, Virgin trains, Virgin records.