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ENTRY

No management of an organization wakes up one morning and decides for the firm to enter a target

market without any entry strategies or focusing on a strategic option available to them . EFC in an

attempt to capture or enter an existing or new market will adopt the following entry strategies:

1. Cost leadership strategy. EFC seeks to be the low cost producer for a given level of quality. EFC

seeks to sell its products and services below the average industry prices to gain entry into the market,

that is UCC campus and other geographical locations. EFC attempts to enter this markets by improving

process efficiencies, gaining unique access to a large source of lower cost materials, making optimal

outsourcing and making vertical intergration decisions. By adopting this strategy, EFC is able to attract

buyers and build a customer base.

2. Market penetration. EFC tries to achieve a market penetration by increasing the number of their

salespersons, increasing advertising expenditure , offering extensive sales promotion items or increasing

publicity efforts. When EFC adopts this strategy, it would enable it enter the target market and also

increase its market share through greater marketing efforts.

GROWTH STRATEGIES

Every organization try to pursue a growth strategy of which Elsbernd food court is part. Organizations

pursue these strategies because of the following factors: pressure from investors and others with a

financial interest in the company, survival, a path to success , and managers desiring to leave behind a

legacy as having made a significant contribution to the company ,

The growth strategies to be adopted by EFC as follows;

1. Vertical integration. By adopting this strategy, EFC can be able to control or own its upstreamsuppliers and its downstream buyers. Vertical integration can have a significant impact on the

business units position in its industry with respect to cost, differentiation and other strategic

issues. This strategy will enable EFC achieve a reduced transportation costs, provide more

opportunities to differentiate(by means of increased control over inputs),expansion of core

competencies ,and capture upstream and downstream profit margins.

2. Outsourcing. The adoption of this strategy would enable EFC to make a conscious decision toabandon or forgo attempts to perform certain value chain activities internally and instead farmthem out to outside specialists and business partners who can perform them better and cheaply

so that much attention can be placed on its core competencies. By adopting this strategy,EFC

enjoys a reduction in the risk exposure, streamlines the companys operations and

concentration is placed on strengthening and leveraging its core competencies.

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3. Market development. By adopting this strategy, EFC can be able to introduce its products andservices to new markets.