The Brand Company is a retail company with various outlets in shopping centres across South Africa. It focuses on the selling of certain brands of men's clothing and footwear. The specific brands that it has been concentrating on for the last 7 years are Jeep (by far the best seller), Lee jeans, Quicksilver, Solomon, Hi-tech and Nike. Currently the business shows a slow growth stage and the monthly turnover is declining. The owner, David, is thinking of expanding his market share in the selling of brand clothing and footwear. He is specifically thinking of selling more brands, expanding by focusing on women's wear and selling the existing brands to customers over the internet on order. He is also considering the opening of a Jeep store instead of being a retailer for different brand names. He asks you for advice on the strategies that could be used. 

3.1 Explain the concept of concentrated growth or market penetration to David and how this strategy could be used to expand his business. (5) 

3.2 Consolidation is another growth strategy that can be utilised to expand an existing market. Outline this strategy and why it will not be a strategy to be considered by the Brand Company to expand. (5) 

3.3 Explain to David the concept of related diversification and how he can make use of related diversification to expand his business in brand clothing. (5) 

3.4 Discuss the concept of unrelated diversification and whether David should make use of this strategy. (5) 

3.5 David is considering the opening of a Jeep store instead of selling different brand names. By concentrating on the advantages, explain to him why you think this could be a viable option as a forward integration strategy. (5)

Answer rating: 100% (QA)

31 Concentrated Growth or Market Penetration Concentrated growth also known as market penetration involves intensifying efforts within existing markets and products David can use this strategy to expa... View the full answer