Strategies ↑ for ↑ growth

SALES PROFILE ETC. TIME ( YRS.) WHAT NEXT ??? HENCE, GROWTH !

‘ INTENSIVE GROWTH ‘ I.

‘ INTEGRATIVE GROWTH ‘ II.

III. ‘ DIVERSIFICATION GROWTH ‘ III.

T H U S DIVERSIFICATION INTEGRATIVE INTENSIVE

I.INTENSIVE GROWTH Opportunities in current product market `

MARKETMARKET P R O D U C T WHAT NEXT ??? HENCE ‘ MARKET PENETRATION ‘ BUT HOW ??? 2.

INTENSIVE GROWTH a.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 MARKETMARKET NEW MARKETS 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 MARKETMARKET NEW PRODUCTS NEXT ??? ‘ PRODUCT DEVELOPMENT STRATEGY ‘

INTENSIVE GROWTH c.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

SUPPLIERSSUPPLIERS C O M P A N Y C O M P E T I T O R S CUSTOMERSCUSTOMERS

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 SUPPLIERSUPPLIER C U S T O M E R B F H

DIVERSIFICATION GROWTH Opportunities outside the core business systems

DIVERSIFICATION GROWTH STRATEGY IS APPLICABLE IF a)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 GROWTH C.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 BF H PRESENTPRESENT NEWNEW C U R R E N TN E W P R O D U C T MARKETSMARKETS ANSOFF MATRIX J.V