The paper 'Company's Development Strategy 'is a great example of a Management Case Study. Growing a business from small to a fully developed one is not an easy task. According to research in this area, it is clear that it’ s only a 10th of a single percentage of companies that manage to attain a revenue growth of $250 annually. However, there are many companies that have managed to make it through despite many stumbling blocks. In China KUKA is struggling to penetrate the market. Market penetration also referred to as market share helps in measuring sales volumes or even achievements in relation to the competition.
Increasing a market share a company has to employ numerous strategies in an attempt to snatch sales from its competitors. In this regard, KAKU has managed to penetrate individual robot markets successively in China. As at the moment, the company is facing numerous challenges in achieving hard targets that the Board has set so far. The first one is on sales orders that are supposed to hit 1 billion in a year. The company is expected to achieve this growth despite the economic uncertainties and economic slowdowns in China (Campbell, pg 34-37).
The company is also expected to reach an EBIT target despite fierce competition in the low-end markets. The other set target is based on cash flow. In this case, the Board expects the cash surplus for the company to increase significantly by 20% compared to that from previous years (Viardot, pg. 21-23). In addition, KUKA systems should be competitive with space for price negotiation. These set -goals require very critical development strategies. Developing a Growth Strategy Intensive Growth A growth strategy in any company should aim at bringing the most results from the least amount of effort and risk.
Growth strategies in most cases resemble a kind of ladder whereby the lower-level rungs present less risk but maybe less quick-growth impact. Therefore, in the course of developing a development strategy for KUKA in China market, the company's lower levels should be considered first. These are referred to as intensive growth strategies (Lynch, pg. 17). They include the following; Market Penetration, the essential concern, for this situation, is KUKA to concentrate on offering a greater amount of its items to its present existing clients.
There are numerous expansive buyer companies that immaculate to this minimum serious development technique in their operations. Market Development is another development plan that is applicable to KUKA. In this case, the company will devise a way of selling more of its current products to an adjacent market. This is all about offering its products to customers in other states that are relying on market development as their key growth strategy. Alternative Channels, this growth strategy, involve going after customers through different ways such as selling the products to customers online.
That is using the internet as the means for accessing customers’ access. In this case, the company will reduce its operation cost and increase the number of sales due to buying convenience (Lynch, pg. 22). The final approach is to increased interest in product development, The China market is new for the company and in order for it to have a successful market penetration despite all linked risks this classic strategy of developing a new product to sell to the existing customers in this marketing environment will be a great success.
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