Innovation strategies

Question 1

What are the 4 expansion strategies

Answer 1

1. Developing a niche market
2. Research and Development
3. Emerging technologies
4. Innovation

Question 2

Explain developing a niche market as an expansion strategy

Answer 2

A niche market is a small segment of the market that has a specific set of characteristics and focuses on a particular demographic, product or service.

Question 3

Explain research and development as an expansion strategy

Answer 3

The activities that a business engages in to develop new services or products, improve existing ones or evolve its processes.
(Could include: new product development; new process development; process intensification; enhance existing products and services; commercialising new technologies and absorption of new technologies).

Question 4

Explain emerging technologies as an expansion strategy

Answer 4

Breakthrough technology that is likely to shape some part of our future.
(Including datafication, artificial intelligence, augmented reality, 3D printing and new energy solutions).

Question 5

Explain innovation as an expansion strategy

Answer 5

Creating a competitive advantage by investing in innovative practices across the 4 functional areas

Question 6

What is horizontal and vertical integration

Answer 6

Vertical integration focuses on profit maximisation using existing products and consumers (e.g. buying out other parts of the supply chain increasing control of the market)
Horizontal integration focuses on other businesses who operate in the same marketplace (e.g. buying other businesses to increase market share)