This framework has its roots in the fact that event as a business proposition for corporatization is relatively nascent in nature. Therefore, the concept of strategic perspective to growth through and along with clients is a major decision to be taken by an event agency having major growth plans. This section deals with the strategic options available by playing off objectives relating to market development against growth in competition.
The above matrix enunciates the choices before the event company when it comes to a trade-off between clients and competition in terms of assigning priorities in decision-making. If the development of new clients from existing competitors is the need of the situation then the event company would be adopting the predatorily market development strategy. This is essentially an offensive through focused strategy wherein clients of other event companies are targeted.
In a market situation where the event company is forced to compete fiercely for retaining its market, the enrichment strategy is needed where the need to maintain and improve the quality of service becomes predominant.
mybigdaymarketing.com
ADVERTISEMENTS:
The retaliatory strategy is basically a defense mechanism wherein the event company tries to defend itself from predatorial strategies of essentially new entrants. This strategy involves taking actions aimed at retaining its existing clientele and potential client base.
The strategy construed to be the most difficult one to adopt is the pro-active market leadership strategy. The event company here can explore new client bases and stretch the limit of its concepts across untried event categories. Every event category has its own special environmental and competitive structures. This strategy nevertheless carries with it seeds of potential phenomenal growth since it enlarges the relevant client base for the event company.
ADVERTISEMENTS:
An important consideration that should be kept in mind is that the strategic approach discussed earlier and the risk versus return matrix in the following section should be kept in mind before adopting any of the above options.