Each strategy carries its own inherent risks. The concept is that each time an organization moves into a new quadrant (horizontally or vertically), risk increases.
Market penetration
A market penetration strategy involves increasing sales to existing customers and increasing the frequency of purchases. This can be achieved by a combination of competitive pricing strategies, advertising, sales promotions, loyalty schemes, etc.
This is the lowest risk strategy as the organization knows the product and knows the market. It is likely to have good information on competitors and on customer ...
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