1. http://www.youtube.com/watch?v=HZ26tYbN8GU Honda product growth http://www.youtube.com/watch?v=WqKi_9p1zks Honda song

2. Product-market  A product market identifies a single product developed for a single market.  This is the smallest type of market unit for which businesses develop strategies. ◦ Example: Acura Legend was developed by Honda for the luxury auto market—a single product for one market.

3. Strategies for expansion into new product-markets  New market  Product expansion  New technology

4. New market ◦ New market: a market in which the company/product has no presence  Must choose whether to enter new international markets, or…  …whether to enter new markets in their own country

5. Product expansion ◦ Product expansion: making new or different products— might include:  Making component parts for other manufacturers  Making new products similar to those already being produced  Making altogether new products  Will the company modify the product for a new country or keep it the same?  Example: McDonalds does not modify its stores or operations in foreign countries, but they do modify the menu for local tastes  Modifying the product costs more, but without modifications local consumers might not buy the product

6. New technology ◦ New technology: using expertise to design more advanced products:  In-house expertise allows companies to develop new products related to those already in production  New technology can lower production costs  New technology can improve the quality and performance of a product  New intellectual property can be a barrier against competition  Innovation can set a company apart from competition  New Technology  http://www.youtube.com/watch?v=LPlZ_AqCvGw http://www.youtube.com/watch?v=LPlZ_AqCvGw  http://www.youtube.com/watch?v=I_s-Im5aOXU http://www.youtube.com/watch?v=I_s-Im5aOXU  http://www.youtube.com/watch?v=Kg4nHNQrKrs http://www.youtube.com/watch?v=Kg4nHNQrKrs

7. Screening product-markets Market factors  Is the market large enough with a high growth rate?  Does the company have experience in the market?  Does the market need the product?  Can the market pay for the product?

8. Screening product-markets Competitive factors  Does the product have a competitive advantage for the proposed product-market?

9. Screening product-markets Strategic factors  Lead time: the amount of time a company is ahead of its competition in pursuing a new strategy.  More time enables a company to develop brand recognition, distribution networks, and customer loyalty  If competitors have a long lead time it will cost more to catch up  Brand recognition: how well-recognized is the product’s name in the proposed market?  Can the company benefit from economies of scale which will provide a cost advantage?  Does the company have intellectual property advantages that will build barriers to competition?

10. Selecting attractive countries  Expanding product-markets into new countries requires an evaluation of how attractive the country is for new opportunities. ◦ What are the risks of doing business in this country? ◦ What types of barriers will the company face? ◦ What resources are available to help reach the target markets?