View/Open - University of Zululand Institutional Repository
View/Open - University of Zululand Institutional Repository
View/Open - University of Zululand Institutional Repository
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would undergo market development perspective, to strengthen the synergy that both tourism<br />
and agriculture wield to develop the area.<br />
Unlike the resource-based strategic options, the market options matrix presents the product<br />
and market choices open to the Ulundi Local Municipality. The market options matrix is<br />
adapted from (Lynch, 2000) and (Kotler, 1999) and is also called Ans<strong>of</strong>t' matrix. It considers<br />
possibility <strong>of</strong> launching new products and moving into new markets as envisaged in Figure<br />
7.2 above.<br />
7.3.1.1 Market penetration strategy to promote Tourism<br />
10 penetrating the existing market <strong>of</strong> tourism industry, a combination <strong>of</strong> activities are to be<br />
mounted - an improvement in product quality and levels <strong>of</strong> service as well as promotional<br />
activities by all stakeholders. Clearly, this is likely to be more expensive in the short term but<br />
should have long-run benefits in terms <strong>of</strong> increased market share. The market penetration<br />
must first and foremost be domestic so that the Ulundi local community would begin to<br />
embrace and appreciate the tourism strengths and opportunities that the area wields. Tourism<br />
is a growing industry both at the local and international fronts. Market penetration may be an<br />
easier strategic option ifthe industry has a growing trend like tourism.<br />
7.3.1.2 Market development strategy to promote Agriculture<br />
For this strategic route, an organization moves beyond its immediate customer focus into<br />
attracting new customers for its existing product range. It may seek new segments <strong>of</strong> the<br />
market, new geographical areas or new uses for its products or services that will bring in new<br />
customers. Prospective aloe harvesting and its processing are a range <strong>of</strong> products that have<br />
the capacity to attract and open new market in the country and potentially overseas. Nguni<br />
cattle farming is practised already but it needs to be in a well coordinated manner to bring the<br />
synergical linkages that diversification <strong>of</strong> Ulundi's economy is likely to introduce between<br />
tourism and agriculture. As part <strong>of</strong>the market option matrix. the Ulundi Local Municipality<br />
would have to diversify to minimize the negative impacts the economy's over reliance on the<br />
government sector has on job creation. When the Ulundi Local Municipality diversifies, it<br />
would move out <strong>of</strong> its current products and markets into new areas like aloe harvesting and its<br />
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