Share
Read also
News & Events
ANEDIK KRITIKOS selects SOFTONE’s innovative SHOPRANOS Digital Commerce platform to create a modern B2B e-commerce store
Business Software
The trends that are transforming CRM and service delivery
Trends & Views
How Digital Transformation works for the benefit of your business
Business Software
How demand forecasting is resolved with ERP
Every time you want to establish a development strategy for your business, start by looking at the different –generic- strategies applied by most businesses, regardless of their industry. Using this as your starting point, you can then focus on the strategies that meet your needs in the best possible way, allowing you to create the best plan for your business.
Market penetration
This is one of the most common development strategies. Businesses use this strategy in order to promote an existing product and, ultimately, increase their market share. The most obvious way for a business to increase its market share is to lower its prices. Nevertheless, this could send a controversial message, since low prices are often associated with low quality products. Thankfully, ERP offers multiple options that can be helpful with price-setting and market share growth, including the so-called rules-based pricing, which allows businesses to understand the current patterns and trends of their industry, customers and competitors before making any changes.
Expansion into new markets
Another important strategy is that of expanding into new markets. This kind of development entails promoting products in a new market, and targeting new markets begins with identifying your customer base, market or location. Some of the most effective ideas for expanding into new markets include franchising, the creation of an online venue and international sales. Moreover, ERP systems feature a variety of tools to help businesses with their expansion strategy: collecting data, marketing reports and sales reports.
Product differentiation
Product differentiation allows businesses to expand their portfolios and offer an even greater variety of products to their customers. An increased number of products offered for sale results in increased sales. The same applies to offering new features for existing products.
In this case as well, ERP tools can help businesses differentiate and expand their product portfolios. With an ERP solution, businesses can offer products that are much closer to their customers’ preferences. Moreover, ERP can tell them not only which products they sell and to whom, but also which products simply remain unsold. Thanks to this information, businesses can adjust their inventory to match their customers wishes and needs.
