STRATEGIES FOR GROWTH

FOR EXSISTING ENTREPRENEURS

Growth Strategies
1. Market Penetration Strategies
2. Market Development Strategies 3. Product Development Strategies 4. Diversification Strategies

Market Penetration Strategies

Maintain or increase the market share of current products by competitive pricing strategies, advertising, sales promotion Restructure a mature market by driving out competitors by aggressive promotional campaign, supported by a pricing strategy

Increase usage by existing customers. For example by introducing loyalty schemes.

Market Development Strategies

1. New Geographical Markets 2. New Demographic Markets
3. New Product Use

Product Development Strategies

A strategy to grow by developing and selling new products to people who are already purchasing the firms existing products.

Diversification Strategies
A strategy to grow by selling a new product to a new market. Backward Integration Forward Integration Horizontal Integration

ROLE OF IT AND E-COMMERCE

E- Commerce
We will define e-commerce as the use of electronic data transmission to implement or enhance any business activity. Example : A buyer sends an electronic purchase order to a seller. The seller then sends an electronic invoice back to the buyer.

Role of I.T & E- Commerce

IT has caused many changes in the MSME sector Information sourcing Data Base Management MIS Communication- Internal and external Book Keeping and Accounting Transacting electronically banking ERP SCM CRM E- Commerce.

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Appropriateness
It is important to identify which business processes can be streamlined using ecommerce technologies.

It is equally important to realize that some processes make effective use of traditional commerce and cant be improved upon using technology.
Technology is not a panacea. Using it when it is not necessary or helpful can be a costly mistake.

Impact of E commerce
Marketing tool A tool to run the organization effectively Enable customers to be aware of pricing Identification of customers habit is easy Instantaneous customer feedback Retailing : Is it a substitute ??? Impersonalized transaction

Popular Use of E commerce

To reach to new customers To sell goods and services To disseminate information more quickly To keep up with the competitor To reach global markets

I.T & ITS IMPACT

I.T Has Changed The Way Business Is Being Done. I.T Has Spawned A New Way Of Doing Work And Business. E-commerce, Web marketing SPM CRM, Networking Viral Marketing Direct Marketing

Benefits of selling on Web

Opportunity to increase revenue : A new sales channel Expand reach to global markets Remain open 24*7 Personalized service to suit to the taste of the customer Power to educate and inform about product Lower the cost of doing business

E-Commerce Triggers in India

Saves time and efforts
Convenience of shopping at home

Wide variety / range of products are available

Good discounts / lower prices

Get detailed information of the product

You can compare various models / brands

Factors to be considered before launching into E-Commerce

Plan how to connect with suppliers, customers and other stakeholders via web Integrate web in the overall strategy Dedicate time, resources, energy and talent to create a meaningful presence on web Decide on what do you expect the website to do for your company Investment and time

Factors to be considered before launching into E-Commerce (contd.)

Check for back office support Analyze web selling vs traditional distribution system Decide on how to promote the website Look out for information from customers Develop privacy policy Always go for testing of the website before launching it commercially

Myths about E-Commerce

Doing business on Web is inexpensive Making money on web is easy Privacy is not important Only technology matters in a website Selling Strategy is not important on web Customer service is not important as in retail store Flash makes a website better E-commerce will replace Brick-and-Mortar

E-Commerce Barriers in India

Not sure of product quality Cannot bargain/Negotiate Not sure of security of transactions / Credit card misuse Need to touch and feel the product Significant discounts are not there Have to wait for delivery Infrastructural problems

E-commerce choices to Entrepreneurs

Online shopping Mall : Rent space for their products in online shopping mall Store front-Building Services :A web hosting service is a type of Internet hosting service that allows individuals and organizations to make their own website accessible via the World Wide Web. Web hosts are companies that provide space on a server they own or lease for use by their clients as well as

 Internet service providers(ISPs) : Provide services similar to store front-building services but provide more flexibility like email account or storage of data files. Hiring professional to design a custom site : Customized website, front office and back office integration. Building a website in house: Complete control over the website, lower cost.

Perquisites of a good Website

Search capacity i.e. Information rich Search tool, site map, subject browsing Shopping cart, secure server connection Credit card payment Customer feedback SPEED Compatible with browsers