How to Use Market Growth And Market Share to Develop Strategy Assignment

How to Use Market Growth And Market Share to Develop Strategy - Assignment Example Knowing the market share of a business organization, will most definitely help in assessing the impact of changes in staff, products, services, prices, distribution channels, and even advertisement campaigns. Having knowledge on the growth of the organizations market will help in identifying the better strategies that the organization needs to enact in order to increase its customer base. This paper examines the strategies an organization can use to increase their market growth, and share. These strategies are vertical integration, and diversification strategies. In explaining these strategies, this paper focuses on an airline company, for example, the Emirates air line company. Strategies: Vertical Integration: One of the strategies that an organization can develop because of possessing knowledge on its growth and share is the vertical integration policy. Vertical integration refers to the expansion of a business organization into other areas that are related to its area of operatio n (Thorson and Duffy, 2012). Take for instance the emirates air line. The air line company might decide to buy a jet fueling company. This strategy is important to the organization because it will help it to refuel a large percentage of its refueling needs. Vertical integration is important because it helps a company to improve efficiency, and reduce the costs of its operation. For example, the transportation costs of the emirates airline will be reduced because it is the main supplier of its fuel. This in turn will increase the profitability of the organization, leading to a growth in its market share and its operations. The company might also aim at gaining control of its main competitors. For example, the competitors of the emirates airline company can be the British Airways, the... This report stresses that most companies intend to achieve growth in its market, and also increase its market share. There are several methods that these organizations can use to achieve this objective. However, this paper has focused on two main methods, that is vertical integration strategies, and diversification strategies. Vertical integration strategies mainly concern itself with the expansion of the organization into other areas that are related to its production and supply. This paper manages to effectively identify the various methods of vertical integration strategies, and how they are useful to an organization. The author declares that diversification strategies on the other hand involves the sale of part of the organizations ventures, for purposes of using the money gained to restructure the business organization so as it may compete effectively in its other markets. This paper makes a cocnlusion that a company can also decide to sale some of its business ventures because of higher operational costs in a given market, and hence the need of cutting costs. It is important to denote that an organization that manages to reduce its costs, will most definitely achieve some aspects of profitability. Finally, the greatest joy of a business organization is to manage capturing a given segment of a market. Capturing these new markets by introducing new products and influencing consumption habits will create a vibrant growth for the company, and an increase in its market share.