Business Growth Strategies and Market Analysis

Market Segmentation and Business Aims

2a) Target Market: The market research segment that a particular product is aimed at.

b) Mission Statement: A statement of a business's aims, phrased in a way to motivate and attract employees.

The Role of Adventure for All

• Security: It creates more security for consumers by stating that safety is an important reason for having fun.
• Inclusivity: It emphasizes that everyone can try it by stating that affordability is important. This attracts many people because an adventure that everyone can do engages people to participate.

Predatory Pricing Strategy

Advantage: In the long term, the company that wins the predatory price war causes the other company to lose and exit the business. The winning company can then raise prices, leaving consumers with no other option but to pay.

Disadvantage: It is an illegal pricing strategy in some countries. In the short term, the price is more beneficial for consumers than for the company; the business might lose money or not earn as much as expected.

Strategic Growth Options

Option 1: Market Development

The growth strategy used in this option is market development, which consists of selling existing products in new markets. The company develops by attracting more consumers, specifically by allowing people with disabilities to access the park.

• Pros: The company saves money because the park would not need physical modifications.
• Cons: The company would need to invest in specialized training for staff and increased security, as disabled people may require significant assistance on high wires or mountain bikes.
• Risk: This is a medium-risk strategy as the company is not specialized in this specific market segment.

Option 2: Diversification

Option 2 utilizes diversification, which is the process of selling different, unrelated goods or services in new markets. The company develops because children enjoy group adventure activities.

• Pros: If the activity is attractive, consumers will return or repeat the activity. Like Option 1, the park would not need physical modifications.
• Cons: This increases organizational complexity due to activity preparation.
• Risk: This is the riskiest option because the company is not specialized in the service or the market. It is more expensive than Option 1, though it could compensate over time.