YOU JUST HAVE TO SAY WHERE AND WE WILL DO THE REST
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GRAND STRATEGY MATRIX
The Grand Strategy Matrix has become a popular tool used by firms for formulating and developing alternative strategies
This matrix is composed by 4 quadrants and divided by 2 axis. In the x axis is located the weak competitive position (left side) and the strong competitive position (right side). In the y axis is located the market growth: at the top is located the rapid and at the bottom, the slow market growth. By using this tool we will know what is the position of our firm in the industry, and in that way, we will formulate strategies according to our position.
Position of homie
We analyzed the position of our company within the industry, we projected a slow market share since we are starting our company and the competitors are strong when it comes to market share.
Our industry's growth is high, according to our marketing research, the housekeeping service is requested more and more by the average family and single people in Bogotá. The industry growth was of 0,6% last year compared to 2013. (DANE)
defining strategies
According to the information that we gathered about our competitive position and the growth of our industry, we are positioned in the quadrant number 2. We analyzed the different strategies and we chose market penetration.
1. Market Development: It aims to expand actual products into new geographical areas. As we haven't started, this strategy could not be an option yet. In a future could be a great option in order to increase sales and we would have the financial resources in order to carry out market development.
2. Market Penetration: Increase market share through greater marketing efforts. This is the strategy we chose since is the best alternative for an starting firm in the service industry. This strategy may help us to increase our competitive position and it does not require great investment.
As we decided to focus on Market Penetration, we decided to implement the following strategies in order to increase our market share:
- Offer to our customers different attractive packages of service with discounts according to the days of service.
- We will increase our publicity efforts in social media, internet and streets, in this way:
- Implement different contests and raffles with our competidors in order to promote the benefits of using Homie
