Posted in Marketing and Strategy Terms, Total Reads: 400
Definition: Exploration Phase
The word exploration can be simply understood as an activity or an instance of exploring or finding something new that is yet to discovered. It is also an investigation or an examination of any unknown region or sector. The exploration phase means that the period or duration during which any organization or an individual carries on the exploration activity.
Exploration phase exists in almost every business whether it is a startup or a well established business organization, as the startup would first go through the exploration phase to see its opportunities and once it is convinced with the scope of opportunities its starts its business, whereas the business which is already well established goes for the exploration phase to look if there is any scope of additional opportunity that might be feasible to venture or invest into. The basic aim of the exploration phase is to come up with something new and innovative in nature.
For an example, considering the case of exploration phase in oil and petroleum business, in this business exploratory drilling is the initial phase which is done for the purpose of determining the physical properties and the outer boundaries of a reservoir. Exploration drilling is important initial phase before the development drilling starts. It is actually crucial as to know the rock samples, temperature measurements, fluid samples for the chemical analysis. It gives useful and valuable information about the subsurface, which is very crucial while determining the best location for the drilling process.
Advantages of the Exploration Phase:-
1. It plays a vital role in early stage of any business in collecting necessary information.
2. It may come up with something creative and innovative.
3. It helps in identifying new opportunities.
Disadvantages of the Exploration Phase:-
1. It incurs huge costs in some cases.
2. It might not be executed with complete commitment.