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Ansoff Growth Matrix
The Ansoff Growth matrix is a framework that helps firms to decide their product and market growth strategy .
Market penetration
In market penetration strategy, focus is on selling existing products into existing markets. Bread Talk has the potential to improve its existing market share with existing products through advertising, integrated loyalty schemes, sales promotion and effective pricing strategy .
Market development
Under market development, the focus is on using existing product for the international market . For capturing the new market, company can export the products into new countries.
New product is developed into existing market in product development strategy. By introducing new product range and modifying the existing product according to the customer's requirement in the existing market, company can increase its profitability and customer base.
Diversification
New product is developed into new market under diversification . Bread Talk can introduce new product range in the new market to capitalize opportunities of global marketplace.
Merits of economic value added (EVA): - Cash not accounting based measure therefore less distorted for performance measurement. - Consistent or goal congruence with profit
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