Раскрытые темы по английскому / Topic_1_New_market_are_vital

New market are vital

When the firm increases, it needs a new market for its goods. New market is not only new territory, or country for product sales, it may be also a new segment of an old market.

The conditions in which firm tries to open a new market:

• the existing market for its products or service is oversaturated;

• the company has enough funds to invest resources into the project, which probably to yield a loss at the first time;

• appearance for some reason the demand for the product in this country, city or region in which it wasn’t early;

• exposure the group of potential customers who can buy our goods if it will be more cheap or elite or something yet;

• leaving some segment of market our competitor, the fight with which will be more expensive, and now our firm can attract its customers.

Stages of opening up the new market:

1. we can be sure that we haven’t ability to increase sales on the existing market (but likely always we have, new product, for example);

2. appearance of the group of potential customers;

3. analysis of characters of potential customers;

4. analysis of firm’s ability to increase production, to lose money ……..

5. working up the financial plan of this project? which include: analyses of costs, future profit………..

6. analysis of a market structure (likely competitors, SWOT analysis etc.)

7. make a decision about realization of this project;

8. working up the final plan of the project.

Finding a new market is an extensive method of increasing sales. Increasing the market share is possible not only by working up a new market. This way firms usually use only if they have not anything else to do to increase their sales. The first of all firm should try to increase it’s market share on the native market, without developing new product (it is usually very expensive and takes a lot of time). There are 2 intensive strategies to increase the market share of the firm:

1. old product – old market. This method provides increasing sales with minimal costs by sale promotion.

2. modified product – old market. This method provides increasing sales by adding new features to old product or by expanding the product range of the firm.