Growth Strategies : Penetration, Product- Market Expansion, Vertical Integration & The Big Idea

There is a limit to which an organization can grow by cutting costs, Closing down offices or restructuring the existing business, moreover, In the process of cutting costs through employee reduction has an Inherent risk of losing muscle with fat. Hence companies have to Constantly emphasize on renewed growth.

Marketing should focus on market creation, not market sharing.

- Regis McKenna

Results are gained by exploiting opportunities, not by solving problems. - Peter Drucker

Only the paranoid survive. - Andy Grove Former CEO, Intel

Alternative Growth Strategies

Present Products I. Growth in existing product markets Increase market share Present Markets
Increase product usage

New Products II. Product Development Add product features, product

refinement Expand the product line Develop a new generation product Develop new products for same market

Increase the frequency used

Increase the quantity used Find new applications for current users

New Markets

III. Market Development Expand geographically

Target new segments

V. Diversification involving new products and new markets Related

Unrelated

Vertical Integration

IV. Vertical Integration Strategies Forward integration

Backward integration

Growth in Existing Product Markets

Increasing Market Share Increasing Product Usage
Provide Reminder Communications Position for Regular or Frequent Use Make the Use Easier Provide Incentives Reduce Undesirable Consequences of Frequent Use

Revitalize the Brand New Applications for Existing Product Users

Product Development for the Existing Market

Product Feature Addition Developing New-Generation Products New Products for Existing Markets

Market Development Using Existing Products

Expanding Geographically Expanding into New Market Segments
Usage Distribution Channel Age Attribute preference Application-defined market Is the market attractive? Resources and will for commitment Adapt to new market Transfer assets and competencies

Evaluating Market Expansion Alternatives

Vertical Integration Strategies

Access to Supply or Demand
Access to Supply Access to Demand Idiosyncratic Products and Services : Oliver Williamson

Control of the Product System Entry into a Profitable Business Area

Comprehensive services Embedded services Integrated solutions

Risks of Managing a Different Business Reduction in Strategic Flexibility Alternatives to Integration

The Impact of Growth Strategies

Incremental Growth Strategies

Significant Growth Strategies

Big Ideas

New Flavor Reminders to use

Enter New Country New generation product

Disneyland Niketown

Strategy As Revolution
Gary Hamel has propounded the thesis that the real payoff comes From the development of REVOLUTIONARY OR BREAK-THROUGH STRATEGIES.

Dell surprised competition by selling computers through direct Marketing route !

Hence thinking out of the box often has a large payoff in the game Of STRATEGY.

CONCLUSION
Ansoffs Product Market Matrix is a basic tool to identify myriad Growth options available to a firm. Basically a marketer has to use This matrix as a framework and then build upon that the Growth Strategy that he or she would like to pursue. But GROWTH and GROWTH and GROWTH is the name of the game in any business.