Date post: | 15-Jul-2015 |
Category: |
Business |
Upload: | mohammed-huda |
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Company Overview
• PRAN stands for Programme for Rural Advancement Nationally.
• In Bangla "Progoti Rupayone Agrani Noboddom".
• PRAN has started their operation since 1980.
• They are the largest processors of fruits & vegetables in Bangladesh.
Intensive Growth Strategy :
Product-Market Expansion Grid
Market Penetration
Strategy
Product Development
Strategy
Market Development
Strategy
Diversification Strategy
Current Market
New Market
Current product New product
•Advertisement•Encourage new customers •Increase Market Share•Attract new customer•Competitors' customers
Intensive Growth
•Target new market •New potential group•Encourage new customers•Add distributional channel•New location
Integrative Growth
• Sales & profit increased through
▫ Backward
▫ Forward
▫ Horizontal integration
Backward
Forward
Horizontal
Backward integration
• Backward integration achieved through
▫ Acquire one or more supplier
To gain more control on cost
To ensure quality product
For PRAN it can be package industry, plastic material producers and other raw materials supplier.
Forward integration
• Forward integration through
▫ Acquire whole sellers and retailers
To gain more profitability
To gain more control on market
To obtain a solid distribution channel.
Horizontal integration
• Horizontal integration through
▫ Acquire on or more competitors because Acquisition is quicker than internal expansion
To gain competitive advantage
To Achieve synergic effect
Operative - More efficient use of capital, Increased specialization
of labor and capital, Spreading the overhead etc.
Directive - when the acquiring firm believe that it can manage the
target firm better and could increase its value
Horizontal integration (cont..)
• By working together companies can combining their financial, production, or marketing resources
• For PRAN horizontal integration can be effective
▫ Acquiring competitor like Acme
▫ Doing strategic alliance with Nestle
Pran Group
Competitor
1
Competitor
4
Competitor
3
Competitor
2
The Way PRAN Can Diversify it’s Products Concentric Strategy:
Sugary, Orange-flavored, non-carbonated soft drink( With Fruit nutrition) like Tang.
Horizontal Strategy: By Developing a new product line of “Ice Cream”
Conglomerate Strategy:- By developing a totally new product line concept of
Organic food (Vegetables, Fruits) and Introducing “PRAN Super Store” for Organic Food.
Advantages: PRAN can Achieve Through Diversification
Concentric Strategy: Orange Powder Drink• Technological similarity
Horizontal Strategy: Ice Creamo Row material Support
Conglomerate Strategy: Organic Food• Existing channels of supply.
• New Marketing effort should be introduced.
• Launch in same economic environment.
• New skills and techniques are required.
• Expansion of human resources and financial resources are required.
The Area Of concentration