Product Expansion Case Study

7.1 PRODUCT EXPANSION

MVC can also widen the features and the product line in order to increase the profits and sales. Therefore, when the product expansion strategy is utilized by every business, they will continue within the existing market strategy. MVC is forced to add more products to its existing list since the older ones are outmoded. This strategy works effectively when technological changes are incorporated.

Expanding product portfolio leads to the share of benefits with the company’s customer base which also stimulates formulation of appeal to the wide Chinese market. According to Newman (1992), the secret behind this is to try out product creating resources, management and engineering to potential customers which will maintain them in terms of their usage, wants and needs in the process of product development.

This needs a greater synchronization of its operational capabilities and market plans that will assure these expansions are viable and implementable. It is beyond reasonable doubts that new market entries knowledge is important for MVC’s market expansion to China. These skills include; creating insights for targeted customers, assessment of relevant appealing offerings and rendering delivery requirements of its products. Maintaining a clear understanding of this strategy across the board members of MVC is a huge task, but it is fruitful in gaining a competitive advantage over other businesses. Market development always entails some of the processes of selling some of the products in the new market. Thus there exist some of the companies in the world that may utilize the concept of marketing strategy as a tool for excellence (Newman, 1992). The first thing that would hinder market expansion strategy is competition. Therefore, if a business would not find a good market for its products therefore it will not increase its