Presented By:MANSOOR SALEEM

SHAHID IQBALTAHIRULLAH KHAN

INTERNAL GROWTH STRATEGIES

Presenter: Mansoor Saleem(0006)

TOPICS TO COVER

Firm Growth Overview Internal Growth StrategyNew Product DevelopmentKeys to Effective New Product DevelopmentReasons for Product Failure

The term strategy means a well-planned, deliberate and overall course of action to achieve specific objectives

FIRM GROWTH

Internal growth strategy

External Growth Strategy

Firm Growth Strategies

The growth strategies are divided into two types as shown i.e. a. Internal Growth Strategyb. External growth strategy

This is what the main focus of presentation is.. “INTERNAL GROWTH STRATEGY”

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Growth Strategies

• Involve investment in resources to achieve growth in sales (assuming the industry is attractive)

• Investments over time may involve a redefinition/expansion of organizational scope

• Three concerns: • what activities and resources to invest in• the implications for scope and complexity• the timing relative to competitors

Growth Strategies

INTERNAL GROWTH STRATEGY

• Internal Growth Strategy = Organic Growth because it does not rely on outside intervention (interruption).

• It involves all the efforts taken within the firm with the purpose of increasing sales revenue & profitability.

• The attributes for internal growth strategy consists off:• Market penetration• Market development• Application development• Product development

INTERNAL GROWTH STRATEGIES

Other Product Related Strategies

International Expansion

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Advantages and Disadvantages of Internal Growth Strategies

Advantages Disadvantages

• Provides maximum control.

• Preserves organizational culture.

• Encourages internal entrepreneurship.

• Allows firms to promote from within.

•Slow form of growth.

• Need to develop new resources. •Investment in a failed internal growth strategy can be difficult to recoup.

• Adds to industry capacity.

NEW PRODUCT DEVELOPEMENT

Presented by: Shahid Iqbal

NEW PRODUCT DEVELOPEMENT

• New product development (NPD) is the complete process of bringing a new product or service to market.

• New product development may be done to develop an item to compete with a particular product or may be done to improve an already established product.

New Product Development

• Examples• This type of development is considered the preliminary

step in product or service development and involves a number of steps that must be completed before the product can be introduced to the market.

• Fair & lovely. • Samsung Mobile

New product development process

• Market Research/Opportunity Scan• Concept Testing• Prototype Development• Market Testing• Product Launch

Why New Products?

• New product development is essential to any business that must keep up with market trends and changes.

• Approximately one-third of the revenue a business generates is coming from products they did not sell five years ago

• Changing environment creates new demands and needs

New Products necessity

• A way of getting new and keeping old customers• Effective way of obtaining a competitive advantage• Source of growth and excitement

Reasons For New Product Failures

• Poor marketing research• Technical problems• Insufficient marketing effort• Bad timing• The wrong group was targeted.• Unrealistic forecast.• Insufficient level of awareness.

OTHER PRODUCT RELATED STRATEGIES

Presented by: Tahir Khan Wazeer

Other Product Related Strategies

Improving Existing Product

Increasing Market

Penetration of an Existing

Product

Extending Product Lines

Geographic Expansion

Improving an Existing Product

• A business can increase it’s revenue by improving an existing product.

Improving it’s durability

Making it more up to

date

Attractive value

adding features

Making it more

convenient to use

Reasonable pricing

Enhancing it’s Quality

Improving an Existing Product (Cont’d)

Improving an item means increasing its value and price potential through customer’s perspective.

• Examples:Software firms routinely increase revenue by placing updated versions of existing products.

Market Penetration of Existing Products

It involves actions taken to increase the sales through greater marketing efforts or increased production capacity & efficiency.Such as:

Increased social media efforts

Increased the sales force size

Increased Advertising Expenditures

Offering Sales Promotions

Lowering Price

Offering Seasonal Discounts

Market Penetration Example

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Market development

• Objective: Cultivate new market segments (demographic, geographic, psychographic) for existing products

• Invest: Marketing programs, new distribution channels, new sales staff, capacity...

• Scope: Increases the number and type of markets served

Extending Product Lines

• It involves making additional versions of a product so that be different to clients.

Example:A computer manufacturerDifferent versions of the same computer typically represents good, better and best alternatives based on processor speed, memory capacity, monitor size graphic capabilities and others.

Geographic Expansions

• Many entrepreneurial businesses grow by simply expanding from their original location to geographical sites.

• Examples:McDonald has 32000 worldwide locations.

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Any Question?