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Consolidation

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What is this?

Consolidation is where organisations focus defensively on their current markets with current products. Formally, this strategy occupies the same box in the Ansoff matrix as market penetration, but is not orientated to growth. Consolidation can take two forms:

Defending market share

When faxing aggressive competitores bent on increasing their market share, organisations have to work hard and often creatively  to protect what they already have. Although market share should rarely be an end in itself, it is important to ensure that it is sufficient to subtain that business in the long term. read more about consolidation here

Written by admin

oktober 26th, 2008 at 4:03 pm

Posted in economics

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