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Existing product Existing market Single product

Existing products New markets

Applicable situations: 1. The market is not saturated 2. Reliable sales channels 3. Success in existing business fields 4. Human and financial resources 5. Excess productivity 6. Globalization of main business

Existing market new products

Motives: 1. Avoid entry barriers 2. Obtain synergy effects 3. Reduce competition and enhance market control

Classification by industry

Classification by attitude

Mechanism change

Classified by status

By funding source

Reason for failure

Motives: 1. Promote technological innovation 2. Avoid business risks 3. Avoid or reduce competition 4. Achieve resource complementarity 5. Explore new markets 6. Reduce coordination costs

equity type

Contractual

1. It is price elastic and has price-sensitive users.

2. Standardized products, difficult to achieve differentiation

3. Buyers don’t pay attention to the brand

4. Price competition is the main means of market competition

5. Consumer switching costs are low

1. Equip production facilities corresponding to economies of scale

2. Reduce the costs of various factors

3. Improve productivity

4. Improve product process design

5. Improve the utilization of production capacity

6. Choose the appropriate trading organization situation

7. Centralized allocation of resources

1. Changes in technology

2. New entrants

3.Changes in market demand

1. Products can be differentiated and recognized by customers

2. Customer needs are diverse

3. The industry in which the enterprise operates is experiencing rapid technological changes, and innovation has become the focus of competition.

1. Have strong R&D and product design capabilities

2. Have strong marketing capabilities

3. Have an incentive system, a management system and a good creative culture

4. Have the ability to improve business quality, establish brand image, and maintain advanced technology and the ability to establish and improve distribution channels

1. The cost of forming differentiation is too high

2. Market demand changes

3. Competitors’ imitation and attacks cause the established differentiation to shrink or even change.

1. There are differences in needs among buyer groups

2. The target market’s market capacity, growth rate, profitability, and competition intensity relatively attractive

3. No other competitor in the target market adopts a similar strategy

4. The company’s resources and capabilities are limited, making it difficult to achieve cost leadership in the entire industry or Differentiation, only individual market segments can be selected

1. Narrow target market leads to high costs

2. The difference in demand among buyer groups becomes smaller

3. Entry and competition of competitors

1. Low barriers to entry or existing barriers to exit

2. Diverse market demands lead to high product differentiation

3. Economies of scale do not exist or are difficult to achieve

1. Overcome fragmentation - gain cost advantage

2. Increase added value - improve product differentiation

3.Specialization-goal aggregation

Technical uncertainty

Strategic uncertainty

first time buyer

Costs change rapidly

Budding businesses and start-ups

Lack of courage and ability to take risks

Insufficient supply of raw materials, parts, funds, etc.

Difficulties in selecting, acquiring and applying proprietary technology

Reactions to substituted products

Customer confusion and wait-and-see

product extension

Brands and Trademarks

Basic pricing method

Main pricing strategies

New product pricing strategy

The best way to reach your customers

advertising promotion

Business promotion

public relations

personal selling

promotional mix strategy

Order-Resource-Production

Resources-Order-Production

Resources-Production-Orders

1. Economies of scale 2. Stability and high quality 3. Good shutdown

1. Stable supply 2. Access to knowledge and technology

Ideal state, learn from each other’s strengths and offset weaknesses

Cost reduction short term benefits

Do innovation for short-term benefits

Cost reduction, long-term benefits

Do innovation for long-term benefits