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Market Growth
Options- Development,
Penetration, Expansion & Diversification
Table of Contents
2
01
02
03
05
04
Questions to Consider Before
Formulating Strategy
Market Opportunity Analysis
- Ansoff Matrix
Market
Opportunity Assessment
Start with
Market Research
Strategic Options
06
07
08
10
09
Step 1 - Define Your Market
Step 2 - Understand the Market
Adoption Curve
o Example - Smartphone adoption curve
o Market Strategies at Each Stage of the
Adoption Curve
Step 3 - PESTLE Analysis to
Understand the Market
Step 5 - Create a
Competitive Advantage
Step 4 - Porter’s Five
Forces Analysis
3
Questions to Consider Before Formulating Strategy
Successful businesses are clear about their business model and ensure their market strategy is aligned to each aspect of their business model.
What is your
Business Mission?
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Who is your
Target Customer?
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What Product/
Service you Offer?
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What is your Go-To-
Market Strategy?
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What are your Functional
Processes?
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Market Opportunity Analysis - Ansoff Matrix
4
Market Penetration
Penetrates existing markets,
gain market share; sell more
to existing customer
Product Development
Sell more to current
customers & markets
Market Development
Enter & develop
new markets
Diversification
Diversify your business
portfolio (leverage core
competencies)
Existing Products & Services New Products & Services
NewMarketsExistingMarkets
Ansoff Matrix
The Ansoff Matrix is one of the most popular strategic models for market growth. The model provides 4 possible business growth strategies - Market Penetration, Market Development, Product Development, and Diversification.
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5
Market Opportunity Assessment
Segmentattractiveness
Capabilities
Segment 5
Segment 1
Segment 9
Segment 2
Segment 12
Segment 13
Segment 8
Segment 6
Segment 7
Segment 11
Segment 4
Segment 10
Segment 3
High
Low
Low High
High Priority
Medium Priority
Low Priority
Do you have the capabilities to take advantage of market opportunities?
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6
Every company needs to review its market strategy. Do you have an opportunity to expand into new markets? Or should you
be targeting some markets better or exiting a few?
StrategicOptions
Target Your Market Better
o More product/ service offerings
o Improved Marketing Pitch
o Competitive War for Leadership
Drop Unprofitable Marketés, Focus on Niche
o Too many markets and poor market position
o Declining profits and market share
Diversify into New Markets
o Leadership in Current Market
o Resources and capability to expand
o Demand in new markets
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7
Start with
Market Research
Once you are clear about your business
model and have identified market
segments, do a thorough market research
about their needs and how your products
meet their expectations.
Identify the trends
This will help you position your product
and lead the competitive race.
Identify customer needs
This will help you create a better product
value and expand your existing market.
Identify new use cases
This can help you expand your current
market and tap into new markets also.
Identify better, faster solutions
This can help you create a new market
that did not exist before.
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Step 1 - Define Your Market
8
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capture your audience's attention.
o Protection from anti-virus
o Protection from identity theft
o Blocking objectionable content
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audience's attention.
o Protection of data
o Protection from hacking
o Protection from all virus & malware
Product B
Product A
FOR
BUSINESSES
FOR FAMILIES/
INDIVIDUALS
Identify the different use case scenarios of your product so that you can map your market and target it accordingly.
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9
Step 2 - Understand the Market Adoption Curve
S – curve model of diffusion process (adopted from Rogers 1962).
CumulativeAdoption
Time
Innovators Early Adopters Early Majority Later Majority Laggards
Saturation
Take Off
Analyze where the market is currently on the adoption curve- Is the market at the stage of Saturation or has it just taken off? Make strategies accordingly.
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Example - Smartphone adoption curve
Here is an example of market adoption curve for the Smartphones industry. Similarly, map out the adoption rate of your product in your industry.
Since the launch of iphone in 2007, the adoption
of smartphones has skyrocketed. According to
analyst horace dediu at asymco, the US market has
passed the early adopters stage, the early majority
and is now entering the late majority stage. The
late majority has now adopted smartphones for
practical purposes after they became widely
adopted by early majority
Insights
Source- Research by analyst Horace Dediu at Asymco
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11
Market Strategies at Each Stage of the Adoption Curve
Strategies for the
Saturation Stage
o Innovate to beat the
competition in a
mature market
o Use your killer value
proposition to create new
markets and new
customer segments
o Make it difficult for
competitors to copy
your idea
o Beat the competition by
superior value proposition
o Create a formidable cost
strategy to get the price
advantage
o Stay in tune with customer
demands and needs to retain
customer loyalty
o Leverage strong partnerships
to consolidate market share
o Introduce new products
or services or enter new
markets to keep the
profits coming
Middle StageTakeoff Stage
o Claim Early Mover
Advantage
o Focus on your Value
Proposition
o Make it difficult for
competitors to enter
the market
o Leverage the market
forces of supply and
demand to establish
the lead
030201
Depending where your product is on the adoption curve, you can use the following strategies for maximum benefit.
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12
Step 3 - PESTLE Analysis to understand the Market
Political Economic Sociological Technological Legal Environmental
o Stability of government
o Potential changes to
legislation
o Global influences
o Economic growth
o Employment rates
o Inflation rates
o Monetary policy
o Consumer confidence
o Income distribution
o Demographic
influences
o Lifestyle factors
o Tax policies
o Employment laws
o Industry regulations
o Health & safety regulations
o Regulations &
restrictions
o Customer attitudes
o International influences
o Changes in information
technology
o Take- up rates
Perform PESTLE Analysis to determine how favorable is the political, economic and legal environment of the new market.
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13
Step 4 - Porter’s Five Forces Analysis
Use Porter’s Five Forces Analysis to analyze if the product/service can survive in the business environment.
Threat of new entrants
o Barriers to entry
o Economies of scale
o Brand loyalty
o Capital requirements
o Cumulative experience
o Government policies
o Access to distribution channels
o Switching costs
Bargaining power of buyers
o Number of customers
o Size of each customer order
o Differences between competitors
o Price sensitivity
o Buyer’s ability to substitute
o Buyer’s information availability
o Switching costs
Threat of substitute
products or services
o Number of substitute products available
o Buyer propensity to substitute
o Relative price performance of substitute
o Perceived level of product differentiation
o Switching costs
Bargaining power of suppliers
o Number of suppliers
o Size of suppliers
o Uniqueness of each supplier’s
product or service
o Focal company’s ability to
substitute
o Switching costs
Rivalry among
existing competitors
o Number of
competitors
o Diversity of
competitors
o Industry
concentration
o Industry growth
o Quality
differences
o Brand loyalty
o Barriers to exit
o Switching costs
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Step 5 - Create a
Competitive Advantage
14
Finally, choose the factors that will give you an edge over
other competitors in the market and capitalize on those.
Access to
Intellectual properties
Exclusive
strategic partnerships
First
mover advantage
Low
cost production
Know-how
Strategic location
Strong R&D
Brand popularity &
Recognition
Best product
or customer service
Barriers
to entry & exit
Exclusive resale &
distribution rights
Flexibility of
production process
Speed
Access to
working capital
Reputation
Strategic Assets01
02
03
04
05
06
07
08 16
15
14
13
12
11
10
9
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Market Growth Options- Development, Penetration, Expansion & Diversification Icons Slide
Additional Slides
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17
Agenda
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Agenda 01 Agenda 02
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Agenda 03
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Agenda 04
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18
Executive Summary-Market Overview
$8
Market Revenue
$600-
$900z
Average price per unit
industrial cameras
$300-
$360
Average price per
unit-frame grabbers
Market size for last
year of study period
$9
$12
Market
Concentration
$20
Degree of
technical change
$8
Compound
annual growth rate
$6
Base year
market growth rate
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19
Industry Size
9.7 MN9.3 MN
2016
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2017
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2018
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2019
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2020
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6.5 MN 8.1 MN 7.9 MN
20
Target Market (Determine Your Brand’s Target Audience)
Target Audience
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21
Target Market Size & Growth
Penetrated market
Target market
Served market
Total
available market
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0
1
2
3
4
5
6
7
8
9
10
0
20
40
60
80
100
120
2017 2018 2019 2020 2021 2022 2023 2024
GrowthRate(%)
MarketSize(RMB100Million)
Market Size Growth Rate
22
Target Market Size & Growth
Growth
Rate
Market
Size
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23
Market Opportunity
$350$150
TODAY
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2019
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Market Opportunity by Business
24
Online
Courses
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needs and capture your
audience's attention.
Virtual
Classroom
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needs and capture your
audience's attention.
Company
Business
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One-on-one
Tutoring
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E-learning
App
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$20 $45 $125 $55 $30
25
Market Trends (Current Number in Years)
0
10000
20000
30000
40000
50000
Latin America Canada Japan Europe Asia Pacific US Rest of World
2020
2017
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26
Market Trends (Percentage Spending in Years)
0
10
20
30
40
50
60
70
80
90
100
Africa Middle East Latin America Eastern Europe North America Asia Western Europe
2020
2017
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
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27
Market Trends (Market Size & Demand Forecasts)
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This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
Market Projected To Reach
US$ 1.1 Trillion by 2020
0
2
4
6
8
10
2016 2017 2018 2019 2020
Asia-Pacific
The Largest Market
28
Market Trends (Market With Potential for Growth)
Middle East & Africa
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Asia-Pacific
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The United States
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Market Trends (High Growth Markets)
Asia-Pacific
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Middle East & Africa
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The United States
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55%
80%50%
30
Market Trends (Key Market Drivers)
01
02
03
04
05
Market Driver
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Market Driver
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Market Driver
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Market Driver
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Market Growth Options Development Penetration Expansion And Diversification PowerPoint Presentation Slides

  • 1. Your Company Name Market Growth Options- Development, Penetration, Expansion & Diversification
  • 2. Table of Contents 2 01 02 03 05 04 Questions to Consider Before Formulating Strategy Market Opportunity Analysis - Ansoff Matrix Market Opportunity Assessment Start with Market Research Strategic Options 06 07 08 10 09 Step 1 - Define Your Market Step 2 - Understand the Market Adoption Curve o Example - Smartphone adoption curve o Market Strategies at Each Stage of the Adoption Curve Step 3 - PESTLE Analysis to Understand the Market Step 5 - Create a Competitive Advantage Step 4 - Porter’s Five Forces Analysis
  • 3. 3 Questions to Consider Before Formulating Strategy Successful businesses are clear about their business model and ensure their market strategy is aligned to each aspect of their business model. What is your Business Mission? This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Who is your Target Customer? This slide is 100% editable. Adapt it to your needs and capture your audience's attention. What Product/ Service you Offer? This slide is 100% editable. Adapt it to your needs and capture your audience's attention. What is your Go-To- Market Strategy? This slide is 100% editable. Adapt it to your needs and capture your audience's attention. What are your Functional Processes? This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 4. Market Opportunity Analysis - Ansoff Matrix 4 Market Penetration Penetrates existing markets, gain market share; sell more to existing customer Product Development Sell more to current customers & markets Market Development Enter & develop new markets Diversification Diversify your business portfolio (leverage core competencies) Existing Products & Services New Products & Services NewMarketsExistingMarkets Ansoff Matrix The Ansoff Matrix is one of the most popular strategic models for market growth. The model provides 4 possible business growth strategies - Market Penetration, Market Development, Product Development, and Diversification. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 5. 5 Market Opportunity Assessment Segmentattractiveness Capabilities Segment 5 Segment 1 Segment 9 Segment 2 Segment 12 Segment 13 Segment 8 Segment 6 Segment 7 Segment 11 Segment 4 Segment 10 Segment 3 High Low Low High High Priority Medium Priority Low Priority Do you have the capabilities to take advantage of market opportunities? This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 6. 6 Every company needs to review its market strategy. Do you have an opportunity to expand into new markets? Or should you be targeting some markets better or exiting a few? StrategicOptions Target Your Market Better o More product/ service offerings o Improved Marketing Pitch o Competitive War for Leadership Drop Unprofitable Marketés, Focus on Niche o Too many markets and poor market position o Declining profits and market share Diversify into New Markets o Leadership in Current Market o Resources and capability to expand o Demand in new markets This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 7. 7 Start with Market Research Once you are clear about your business model and have identified market segments, do a thorough market research about their needs and how your products meet their expectations. Identify the trends This will help you position your product and lead the competitive race. Identify customer needs This will help you create a better product value and expand your existing market. Identify new use cases This can help you expand your current market and tap into new markets also. Identify better, faster solutions This can help you create a new market that did not exist before. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 8. Step 1 - Define Your Market 8 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. o Protection from anti-virus o Protection from identity theft o Blocking objectionable content This slide is 100% editable. Adapt it to your needs and capture your audience's attention. o Protection of data o Protection from hacking o Protection from all virus & malware Product B Product A FOR BUSINESSES FOR FAMILIES/ INDIVIDUALS Identify the different use case scenarios of your product so that you can map your market and target it accordingly. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 9. 9 Step 2 - Understand the Market Adoption Curve S – curve model of diffusion process (adopted from Rogers 1962). CumulativeAdoption Time Innovators Early Adopters Early Majority Later Majority Laggards Saturation Take Off Analyze where the market is currently on the adoption curve- Is the market at the stage of Saturation or has it just taken off? Make strategies accordingly. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 10. 10 Example - Smartphone adoption curve Here is an example of market adoption curve for the Smartphones industry. Similarly, map out the adoption rate of your product in your industry. Since the launch of iphone in 2007, the adoption of smartphones has skyrocketed. According to analyst horace dediu at asymco, the US market has passed the early adopters stage, the early majority and is now entering the late majority stage. The late majority has now adopted smartphones for practical purposes after they became widely adopted by early majority Insights Source- Research by analyst Horace Dediu at Asymco This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 11. 11 Market Strategies at Each Stage of the Adoption Curve Strategies for the Saturation Stage o Innovate to beat the competition in a mature market o Use your killer value proposition to create new markets and new customer segments o Make it difficult for competitors to copy your idea o Beat the competition by superior value proposition o Create a formidable cost strategy to get the price advantage o Stay in tune with customer demands and needs to retain customer loyalty o Leverage strong partnerships to consolidate market share o Introduce new products or services or enter new markets to keep the profits coming Middle StageTakeoff Stage o Claim Early Mover Advantage o Focus on your Value Proposition o Make it difficult for competitors to enter the market o Leverage the market forces of supply and demand to establish the lead 030201 Depending where your product is on the adoption curve, you can use the following strategies for maximum benefit. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 12. 12 Step 3 - PESTLE Analysis to understand the Market Political Economic Sociological Technological Legal Environmental o Stability of government o Potential changes to legislation o Global influences o Economic growth o Employment rates o Inflation rates o Monetary policy o Consumer confidence o Income distribution o Demographic influences o Lifestyle factors o Tax policies o Employment laws o Industry regulations o Health & safety regulations o Regulations & restrictions o Customer attitudes o International influences o Changes in information technology o Take- up rates Perform PESTLE Analysis to determine how favorable is the political, economic and legal environment of the new market. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 13. 13 Step 4 - Porter’s Five Forces Analysis Use Porter’s Five Forces Analysis to analyze if the product/service can survive in the business environment. Threat of new entrants o Barriers to entry o Economies of scale o Brand loyalty o Capital requirements o Cumulative experience o Government policies o Access to distribution channels o Switching costs Bargaining power of buyers o Number of customers o Size of each customer order o Differences between competitors o Price sensitivity o Buyer’s ability to substitute o Buyer’s information availability o Switching costs Threat of substitute products or services o Number of substitute products available o Buyer propensity to substitute o Relative price performance of substitute o Perceived level of product differentiation o Switching costs Bargaining power of suppliers o Number of suppliers o Size of suppliers o Uniqueness of each supplier’s product or service o Focal company’s ability to substitute o Switching costs Rivalry among existing competitors o Number of competitors o Diversity of competitors o Industry concentration o Industry growth o Quality differences o Brand loyalty o Barriers to exit o Switching costs This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 14. Step 5 - Create a Competitive Advantage 14 Finally, choose the factors that will give you an edge over other competitors in the market and capitalize on those. Access to Intellectual properties Exclusive strategic partnerships First mover advantage Low cost production Know-how Strategic location Strong R&D Brand popularity & Recognition Best product or customer service Barriers to entry & exit Exclusive resale & distribution rights Flexibility of production process Speed Access to working capital Reputation Strategic Assets01 02 03 04 05 06 07 08 16 15 14 13 12 11 10 9 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 15. 15 Market Growth Options- Development, Penetration, Expansion & Diversification Icons Slide
  • 17. 17 Agenda This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Agenda 01 Agenda 02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Agenda 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Agenda 04 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 18. 18 Executive Summary-Market Overview $8 Market Revenue $600- $900z Average price per unit industrial cameras $300- $360 Average price per unit-frame grabbers Market size for last year of study period $9 $12 Market Concentration $20 Degree of technical change $8 Compound annual growth rate $6 Base year market growth rate This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 19. 19 Industry Size 9.7 MN9.3 MN 2016 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2017 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2018 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2019 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2020 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 6.5 MN 8.1 MN 7.9 MN
  • 20. 20 Target Market (Determine Your Brand’s Target Audience) Target Audience This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 21. 21 Target Market Size & Growth Penetrated market Target market Served market Total available market This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 22. 0 1 2 3 4 5 6 7 8 9 10 0 20 40 60 80 100 120 2017 2018 2019 2020 2021 2022 2023 2024 GrowthRate(%) MarketSize(RMB100Million) Market Size Growth Rate 22 Target Market Size & Growth Growth Rate Market Size This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 23. 23 Market Opportunity $350$150 TODAY This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2019 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 24. Market Opportunity by Business 24 Online Courses This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Virtual Classroom This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Company Business This slide is 100% editable. Adapt it to your needs and capture your audience's attention. One-on-one Tutoring This slide is 100% editable. Adapt it to your needs and capture your audience's attention. E-learning App This slide is 100% editable. Adapt it to your needs and capture your audience's attention. $20 $45 $125 $55 $30
  • 25. 25 Market Trends (Current Number in Years) 0 10000 20000 30000 40000 50000 Latin America Canada Japan Europe Asia Pacific US Rest of World 2020 2017 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 26. 26 Market Trends (Percentage Spending in Years) 0 10 20 30 40 50 60 70 80 90 100 Africa Middle East Latin America Eastern Europe North America Asia Western Europe 2020 2017 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 27. 27 Market Trends (Market Size & Demand Forecasts) This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. Market Projected To Reach US$ 1.1 Trillion by 2020 0 2 4 6 8 10 2016 2017 2018 2019 2020 Asia-Pacific The Largest Market
  • 28. 28 Market Trends (Market With Potential for Growth) Middle East & Africa This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Asia-Pacific This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. The United States
  • 29. 29 Market Trends (High Growth Markets) Asia-Pacific This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Middle East & Africa This slide is 100% editable. Adapt it to your needs and capture your audience's attention. The United States This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 55% 80%50%
  • 30. 30 Market Trends (Key Market Drivers) 01 02 03 04 05 Market Driver This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Market Driver This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Market Driver This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Market Driver This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Market Driver This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
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