Monday 8 July 2013
The Intensive strategies consist of three types of strategies market penetration, market development and product development. Intensive strategies purpose is to make intensive efforts to improve a firm s’ competitive position with existing products. Market penetration strategy seeks to increase market share of existing products or services in existing market. In market development, marketers introduce existing products into new geographic areas. Product development is a strategy in which companies increase sales by improving or modifying present products or services.
China mobile is the world’s largest telecom operator. ZONG is one of the leading telecommunication companies in Pakistan; it was the first international brand of China mobile or CMPAK in Pakistan, who carried out cellular services in Pakistan. It was launched in Pakistan in 2008; later on, in 2011 it had a subscriber base of 13.2 million. ZONG s’ main competitor was Ufone. Ufone has already achieved huge success in market shares.
In starting days, ZONG achieved lots of customer concentration because low rates calls,
message packages etc but gradually its market shares lost its place because of ZONG
networking connectivity. Mostly customers left ZONG due to connectivity problem.
Customers also complain about their other services e.g. facing difficulty in receiving text
messages. GPRs setting problems, call dropped during call etc.
Q # 01:
You are required to identify ONE of the intensive strategies that ZONG should apply to achieve its market place again? (5 marks) Next, justify HOW this strategy should be implemented. (15 marks)
Solution:
ONG should apply Product Development strategy From the intensive strategies to achieve its market place again:-
Product Development which helps to improves present product to achieve more revenue. Under this strategy, a business seeks to grow by developing improved products for the present markets. The current product may be replaced or the new products may be introduced in addition to the existing products.
Product Development which helps to improves present product to achieve more revenue. the part of services that the company needs to improve is networking. if ZONG improves it networking services then it will get competitive advantages over others.
For example, TOYOTA Company always seeks for new technology to increase its vehicle fuel efficiency. This improvement helps TOYOTA to be more competitive than others. As the result, TOYOTA Company gain more sales by selling hybrid vehicle as it helps to reduce pollution to environment as well.
