Strategies For Growth
Strategies For Growth
FOR GROWTH
PRESENTED BY: DIYA MAKKER
ROLL NUMBER: 220243
Unit 5
INTRODUCTION
Growth strategies are the tactical approaches
for expanding a business sustainably and
profitably.
Goals:
Increase market share
Increase scale and scope of operations
Enhance competitiveness sustainably
Maximise revenue streams
Improve profitability
STRATEGIES
01 M a r k e t
Penetration:Involves
increasing market share in the
existing market with an
existing set of products
03P r o d u c t
Development:Involves
creating new products based
on market research in the
existing market
04D i v e r s i f i c a t i o n : I n v o l v e s
taking
new products or services to
new regions or markets
MARKET
PENETRATION
Coca-Cola introducing a
new marketing campaign
to increase sales of its
existing products in MARKET
current markets. This
could involve promotional DEVELOPMENT
offers, advertising, or
loyalty programs aimed at Apple expanding its
attracting more market reach by entering
customers or increasing new geographical
the frequency of markets. For instance,
purchases from existing launching its products in
customers. emerging markets like
Cuba or expanding its
retail presence in
countries where it has a
relatively small market
share.
DIVERSIFICATION
Amazon diversifying its
business by acquiring Whole
Foods Market, entering the
grocery retail industry. This
PRODUCT strategy involves entering
new markets with new
DEVELOPMENT products or services that
may or may not be related
Nike introducing a new line of to the company's existing
athletic shoes with innovative offerings. For Example,
features or technology. This Google venturing into
strategy involves creating new healthcare by developing
products or improving existing health monitoring devices or
ones to meet the changing software.
needs and preferences of
customers. For instance,
launching lightweight running
shoes with advanced
cushioning technology.
MERGERS
Mergers are strategic moves where two or more
companies combine to form a single entity.
Mergers are a way for companies to expand their
reach, expand into new segments, or gain market
share.
Market
Congeneric Conglomerate Horizontal Vertical
Extension
Product Extension
Merger 2 firms that have Companies that Consolidation Companies operating
Firms operating in nothing in common sell same products between 2 or more at different levels
same market or sector Eg. Walt Disney but compete in competitors within the same
with overlapping merged with different markets offering same industry’s supply chain
factors American Eg. Eagle products or services combine their
Eg. Citigroup X Broadcasting Bancshares X RBC Eg. Diamler-Benz X operations
Travelers Insurance company Centura Chrysler Eg. AOL X Time Warner
ACQUISITIONS
An acquisition is a business combination that occurs when
one company buys most or all of another company's shares.