Defining the SMEs Various types of strategies in a very proper manner.

1. Differentiating SMEs
Strategies for Success
Prepared by: Ata Ur RahmanAzizi
97/MGT/A/14
University of Khana E Noor

2. Introduction
• A healthy economy demands a balance of small as well as large firms.
• Small and Medium sized Enterprises (SMEs) typically generate more than half of
GDP.
• They often generate new ideas and innovation. (Start-ups, however, represent just
a small proportion of SMEs.)
• Small businesses—not big companies—are the largest employers in most countries
and they struggle to achieve full employment
• SMEs provide new knowledge to the global market

3. Product Development Strategy (Necessity is the
mother of invention)
Developing new or modifying existing products and offering them to current or new markets
by having keen attention to competitors and customer needs.
• Product Development Diversification Strategy (company's existing market is saturated, and
revenues and profits are stagnant or falling.)
Ex: Selling Insurance products and decides to develop a financial education program aimed at
college students
• Product Modification Strategy (aimed at existing markets for capturing new users)
Ex:Adding whitening ability or anti-cavity attribute to the existing clean teeth toothpaste.
• Revolutionary Product Development (Products that has no real prior need)
Ex: Computer and Cell phone

4. Market Influence Strategy
• Market penetration is one of the four alternative growth strategies in the Ansoff
Matrix.
• A market penetration strategy involves focusing on selling your existing products
or services into your existing markets to gain a higher market share.
• This is the first strategy most organizations will consider because it carries the
lowest amount of risk
For example, if your current customer base consists of men aged between 16 and
25 then this strategy would involve attempting to sell more of your existing
products or services to this same group.
• This strategy is made of competitive pricing strategies, advertising, and sales
promotion

5. Ansoff Matrix
• Market penetration strategy (selling your existing products into your
existing markets to gain a higher market share)
• Market development strategy (selling your existing products into new
markets)
• Product development strategy ( developing new products or services for
your existing markets)
• Diversification strategy (achieves growth by developing new products for
completely new markets)

6. Market Development Strategy
Market development is the use of an existing product or service offering to
attract new customer market
Product diversification directs the organization towards introducing products
to new markets

7. Marketing Strategy (5ps)
A marketing strategy is a plan developed by an organization that describes how a
company's products and/or services will be offered to customers.
A marketing strategy is a business' overall game plan for reaching people and
turning them into customers of the product or service that the business provide
• Increase sales
• Bring in new customers
• Get existing customers to buy more
• Introduce a new product or service
• Increase market share
• Better establish your brand

8. Pricing Strategy
Pricing is one of the four elements of the marketing mix, along with product, place
and promotion. Pricing strategy is important for companies who wish to achieve
success by finding the price point where they can maximize sales and profits.
• Premium Pricing (higher price than the competitors by having uniqueness in
product)
• Penetration Pricing (capture market share and customers by entering the market
with a low price)
• Economy Pricing (Low price for price sensitive segment)
• Price Skimming(gain maximum revenue advantage before other competitors begin
offering similar products or alternative)
• Psychological Pricing ($99 is psychologically "less" in the minds of consumers than
$100)

9. Quality Customer Services
• A strategy to compare the expectation and satisfaction of the customer.
• By this strategy, the company deliver complete info and values through
thorough knowledge of the inventory, experience with several types of
products and being able to help customers make the best choices for them.

10. Human Resource Strategy
• SMEs need to attract top talent to boost their competitiveness
• offer flexible work arrangements, attractive stock options and other
perquisites for creative spirits
• This strategy is uses to attract and retain talents
• Creating attractive, good working environment and culture
• Facilitating training and development opportunities