The strategy of intensive growth involves activities in already occupied market segments. It also aims to achieve marketing goals by increasing available resources. This strategy is used by companies that have the opportunity to grow in the existing market with old goods. Market penetration, product development, and market development ensure the intensive growth of the organization through the selection and implementation of appropriate marketing strategies.
Market penetration strategy belongs to the category of concentrated growth strategies and is used in a fast-growing but still available market. The company continues to promote its old goods in the existing market. Enterprises seek to expand the marketing of existing products in existing markets through increased product distribution, product promotion, and the use of the most competitive prices. This leads to increased sales, as new buyers are also attracted. When implementing a market penetration strategy, organizations gradually strengthen their market position. In the context of Etihad Airways, the company can reach more customers by offering its services at a lower price. For instance, making flight tickets cheaper than the competition will ensure that more customers use Etihad’s services.
Market development strategy is a strategy of extensive growth – companies reach new markets with old goods. By attracting new consumers, income and profits increase in the long run. Successful implementation of the market development strategy, eventually, transitions the company into using the market penetration strategy. Etihad, despite operating around the globe, does not provide its services in many countries. This fact is an opportunity for the company to consider offering flights in previously unexplored markets.
A product development strategy is useful if the company has several products that are in demand. To maintain its position, the company develops new or modified products. In this context, Etihad can include more benefits to its economy-class flights to attract more customers. Among integrative options, there is an opportunity for the acquisition of ticket distribution companies. However, such growth will require substantial investments, and the current code-sharing program provides similar benefits to its customers.
These three strategies provide a means for improving the core competencies of the company. The business concept is redefined by making adjustments to the target demographic and selling proposition. However, the business scope stays the same because the company will be concentrated on marketing and improving the existing products. Slight repositioning in brand identity will occur because of lower prices in current markets and an increase in provided value in economy-class flights.