Growth strategies and survival strategies
I and going to explain about two strategies that are the same and compare it with Mc Donald’s and the Manchester Central Library. Two strategies that are different and compare why they are successful or not. Also I’m going to explain why similarities and differences exist. Growth strategies and survival strategies are very similar. In survival strategies they go into new markets that are profitable and go out of markets that aren’t. Growth strategies in the market penetration section they try to increase the sales in one of there markets. Both strategies help each other.
For example Mc Donald’s uses both strategies. In market penetration they create new products that they think will be profitable in there business and then they sell it. If it is profitable they will keep making it and if it isn’t then they will stop making it. These ties into the survival strategies section. The Manchester Central Library uses the growth strategy market development section. With this they bring out new genres of books to introduce new markets to it. This will keep people coming and introduce new customers to the Manchester Central Library. They keep opening events as well to get people to come. This is there survival strategy. If they didn’t keep having events customers would gradually lose interest in the business.
Branding and relationship marketing are very different. Branding is a logo, a name, a term or sign that relates to a business. Relationship marketing focuses on what is best for the customer. I am going to explain why each strategy is useful for each of the businesses. Mc Donald’s is in the private sector so they concentrate on making a profit. It’s because of this that their main strategy is branding. People recognise the logo and the slogan of this business. It’s because of this that they make a profit. It’s because of the brand that Mc Donald’s is so well known now. The Brand does help it. This can’t be done for every business but a big private business it does.
The Manchester Library is in the public sector. This means the concentrate on what the customers want. With this they are best related to the relationship marketing. They try and make what is best for there customers. They give them cards so they come back again and they give them what they need. If there were no similarities and differences the business wouldn’t work. With them they can find out what works and what doesn’t. Also with which market that they are aiming at. It shows what the customer will like and from this information the product can create more products. Also to help find out what the customers will like they can use a questionnaire and then analyse it.
The branding strategy is vital to a business in my opinion. This is because people are more likely to remember an image than a name. So if they see that image again and relate it to something they like they will defiantly come again. By using a brand it can make a profit so it is a really useful strategy to use. For Mc Donald’s its growth strategy is the most used out of them all. This is because they want to expand into new markets and this is why they became global. It is vital to them as it keeps increasing their profit. Each business has its own main strategy that they use, this is Mc Donald’s one. The Manchester Library’s main strategy is Relationship Marketing. They use this the most as they only want what’s best for there customer. They are local and don’t want to make a huge profit. I think that they do this because they are owned by the government. This means that the library’s are built for public use.