Photo AI
Read the scenario below and answer the questions that follow - NSC Business Studies - Question 4 - 2022 - Paper 1
Question 4
Read the scenario below and answer the questions that follow. TOM TRADING ENTERPRISE (TTE) Tom Trading Enterprise wanted to increase the sale of their products. TTE... show full transcript
Worked Solution & Example Answer:Read the scenario below and answer the questions that follow - NSC Business Studies - Question 4 - 2022 - Paper 1
Step 1
Identify the type of intensive strategy used by TTE in the scenario above.
Answer
The type of intensive strategy used by Tom Trading Enterprise (TTE) in this scenario is market penetration. This strategy involves increasing sales of existing products in existing markets. By employing additional sales representatives to distribute their products to other provinces, TTE aims to capture a larger market share and enhance product visibility.
Step 2
Explain TWO other types of intensive strategies.
Answer
-
Market Development: This strategy involves entering new markets with existing products. Companies may target different geographical areas or new demographic segments to sell their products, thereby expanding their customer base.
-
Product Development: This involves creating new products or improving existing ones to meet consumer needs or enter new market segments. Businesses can innovate by adding features or developing entirely new products to attract customers and enhance their competitive edge.