Question

After finishing his marketing degree, Ryan inherited the family shrimp shack restaurant on the beach in Ocean City. The restaurant is a small, local institution that beach visitors have been coming to for decades. Ryan wants to make his business grow and is considering either a market penetration or market development strategy. What are some of the things Ryan should consider when trying to determine which strategy he should pursue?Then list some of the activities (implementation tactics) he would pursue if he were considering:1) A penetration strategy2) A development strategy

Answer 1

Answer:

Ryan should consider the following before he determine which business strategy he wil follow;

• The class of people that visit the beach regularly

• If the beach has a particular time or period, when visitors are more.

• The business strategy of his competitors.

• All possible factors that can limit his profit.

If he is considering a penetration strategy, he has to do the following;

• Reduce the cost of food in his restaurant, to increase his profit percent.

• advertise his restaurant in the beach, by playing loud music or using interesting decorations.

• increase his customer service.

If he is considering a development strategy, he has to do the following;

• Carry out a survey research on the people coming to the beach.

• determine the product of food that sales most in his restaurant, and build more strength on that food or product.

• increase the hours his restaurant is open for sales.