Which of the nine corporate growth strategies is JPay following with the introduction of their JP3 player?
From 1990 to 2011 the number of inmates in the U.S. state or federal prisons more than doubled to 1.54 million. Benefiting from that surge are corrections contractors such asJPay. The Miami-based company offers services such as money transfers, e-mail communications, and video visitations (all of which are monitored by corrections officers) for more than 1 million prisoners in about 35 states. Last yearJPay began marketing its own line of “prison proof” MP3 players. The JP3, which family or friends can buy for prisoners online for around $40 is virtually indestructible. Inmates use it to browseJpay’s library of more than 10 million songs on electronic kiosks the company installs in common areas inside prisons. Downloads run from $1.29 to $1.99 a tune. JPay didn’t pioneer its new line of business. Keefe Group, a St Lousi-based supplier of food and personal care products to prison commissaries, launched its own MP3 player and music download service for prisoners in 2009.
(1) (a) Which of the nine corporate growth strategies is JPay following with the introduction of their JP3 player? (b) Explain why your strategy choice is the correct one? (Week One Lecture Notes)
(2) (a) Which of the Five Patterns of Target Market Selection isJPay following with their products and services? (b) Explain why you made this choice? (Week Five Lecture Notes)