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Strategic Markets - Vodafones

In: Business and Management

Submitted By Cmma
Words 2819
Pages 12
Definition[1]
Strategic markets are defined accordingly to the corporate strategy, which means the main question to be asked is “will investing in this market bring added value to the company?”. Factors affecting the answer will depend not only on the firm’s strategy and objectives, but also on its industry. It is important to stress that added value does not necessarily mean profit, or at least not in a direct way. The strategic importance of the markets goes beyond selling a product or service; it can range from labor cost, to raw materials supply, passing through technology, focus on new trends and the potential market size. To carry the analysis of whether a market is strategic or not several elements should be taken into consideration, such as industry policies, market trends, market growth rate, possible opportunities, market profitability, competition, market size, key success factors and every other key performance indicator available.

Attractive markets[3]

Framework for choice of markets[2]
Low

High

Gradual
Entry

Rapid Entry

High

Disregard for now

Establish a reasonable foothold

Low

Strategic importance of the market

Firm’s determination to enter the market

It is important that the firm has the ability to exploit the markets, which means it has to be willing to take (reasonable) risks.

Strategic markets change over time, not long ago North America and Europe were the first choice, but as we can see Africa and Asia are now taking over that position.

Factors impacting market attractiveness[4]

Examples
“Deloitte announces significant investment in strategic markets:
Additional US$750 million over next three years”[5]
“India is a strategically important market for us: David
Redfern, GSK Plc”[6]
“Emerging Markets Strategically
Important For Unilever Despite
High Inflation”[7]
“Emerging…...

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