Strategies↑ for

↑ growth

SALES PROFILE ETC.

TIME ( YRS.)

WHAT NEXT ???

HENCE , GROWTH !

‘ INTENSIVE GROWTH ‘

I. I.

‘ INTEGRATIVE GROWTH ‘

II. II.

III.

‘ DIVERSIFICATION GROWTH ‘

III.

T H U S

DIVERSIFICATION

INTEGRATI

VE INTENSIVE

I. INTENSIVE GROWTH

Opportunities in current product market

`

MARKET

P R O D U C T

WHAT NEXT ??? HENCE

‘ MARKET PENETRATION ‘

BUT

HOW ???

2.

INTENSIVE GROWTHa. MARKET PENETRATION STRATEGY

i. Stimulate customers to increase present rate of usage

a. Increase unit of purchase b. Increase rate of product development or obsolescence c. Suggest new uses of the product d. Offer price incentives for increased use

ii. Attract competitors customers

a. Improving brand differentiation b. Stepping up promotion

iii. Attract non – users

P R O D U C T

MARKET

NEWMARKETS

NEXT ???

‘MARKET DEVELOPMENT STRATEGY ‘

INTENSIVE GROWTH B. MARKET DEVELOPMENT STRATEGY

1. Open additional geographic markets

a. Regional b. National c. International expansion

2. Attract other markets

a. Developing suitable product versions b. Entering other channel of distribution c. Advertise in other media

P R O D U C T

MARKET

NEW PRODUCTS

NEXT ???

‘ PRODUCT DEVELOPMENT STRATEGY ‘

INTENSIVE GROWTHc. PRODUCT DEVELOPMENT STRATEGY

1. New product strategies 2. Create different quality versions 3. Develop additional models and

sizes

INTEGRATIVE GROWTH

Opportunities in other parts of core business systems i.e. company and competitors , suppliers and customers

SU PPLIERS

C O M P A N Y

C O M P E T I T O R S

CUSTOMERS

INTENSIVE GROWTH Strategy is applicable if :

a) Basic industry has strong growth future

b) Company can increase profitability , efficiency or control by moving

> Backward > Forward or > Horizontal ……………… THUS

INTENSIVE GROWTH A. Backward integration strategy

B. Forward integration strategy

C. Horizontal integration strategy

INTEGRATIVE GROWTH

A. BACKWARD INTEGRATION STRATEGY

Company seeks ownership or increased control of its supply

systems …………

INTEGRATIVE GROWTH

B. FORWARD INTEGRATION STRATEGY

Company seeks ownership or increased control of its distribution systems

INTEGRATIVE GROWTH

C. HORIZONTAL INTEGRATION STRATEGY

Company seeks ownership or increased control of some of its

competitors

C O M P A N Y

C O M P E T I T O R S

SU PPLIER

C U S T O M E R

B F

H

DIVERSIFICATION GROWTH

Opportunities outside the core business systems

DIVERSIFICATION GROWTH

STRATEGY IS APPLICABLE IFa) Core business system does not

show additional opportunities b) Opportunities outside the core

business system are superior

DIVERSIFICATION GROWTH

A. CONCENTRIC DIVERSIFICATION STRATEGY

B. HORIZONTAL DIVERSIFICATION STARTEGY

C. COGLOMERATE DIVERSIFICATION STRATEGY

DIVERSIFICATION GROWTH

A. CONCENTRIC DIVERSIFICATION STRATEGY

New products that have technological and/or marketing synergies with existing for new

class of customers

DIVERSIFICATION GROWTH

B. HORIZONTAL DIVERSIFICATION STRATEGY

New products appealing to its present customers though technologically un-related

DIVERSIFICATION GROWTHC. COGLOMERATE

DIVERSIFICATION STRATEGY

New products for new classes a. Promising to offset some

deficiencies b. Representing greater

environmental opportunity

Market penetration strategy

Product development strategy

Market development strategy

Diversification strategy

B F

H

PRESENT

NEW

C U R R E N T

N E W

P R O D U C T

MARKETS

ANSOFF MATRIX

J.V