1. PRESENTATION
ON
GROWTH
STRATEGIES

2. STRATEGY
A strategy of a corporation forms a
comprehensive master plan stating how the
corporation will achieve its mission and
objectives.
“Plan to achieve the mission and
objectives.”
 Strategies answer the question HOW you
will attain objectives.

3. Different Number of Strategies
 Growth Strategies: Expand the company’s
activities.
 Stability Strategies: Make no change to the
company’s current activities.
 Retrenchment Strategies: Reduce the
company’s level activities.
 Combination of different Strategies.

5. Growth/Expansion Strategies
These strategies are designed to achieve growth
in sales, assets, profits or some combination.
A corporation can grow internally by
expanding its operations both globally and
domestically, it can grow externally through
mergers, acquisitions, and strategic alliances;
i.e.
•Intersification
•Diversification

6. Intersification
A corporation can grow internally by expanding its
operations both globally and domestically through
following strategies:
•Market Penetration
•Market Development
•Product Development

7. Market Penetration: You sell more products to your same
customers.
- you lower the price, add salespersons and outlets and try to
increase use by present customers.
Market Development : You distribute goods to new customers
that haven’t traditionally been in your territory or that haven’t been
the type of customer to whom you market. Often useful when a
company has excess production capacity.
Product Development : Change or renew product that is
becoming perceptually, or technically inferior.
E.g. Old Tide is New Tide with crystals – In some cases products
are is just perceived as inferior so you change your advertising and
call it a new product.

8. Old Product New Product
Old Penetration Product
Market Development
New Market Conglomerate
Strategies
Market Development

9. Diversification
Vertical Integration
•Forward
•Backward
Horizontal Integration
Concentric Diversification
Conglomerate Diversification

10. Concentration
•Vertical Integration: The degree to which a firm operates
vertically in multiple locations on an industry’s value
chain extracting raw materials to manufacturing to
retailing.
•Horizontal Integration: by expanding the firm’s products
into other geographical locations or by increasing the
range of products and services offered to current market.

11. Concentric Diversification
Adding new, but related, products or services.
-Complementary and Supplementary.
Conglomerate Diversification
Adding new, unrelated products services.
E.g. ITC Ltd, which is mainly in Tobacco
Products diversified into paper products, hotel
business, agro products etc.