growth strategies

The Decision Process and the Critical Factors

Growth Strategies - As defined by Universal Laws and validated by the teachings from The Wharton School's New Business Development Program.      

 

The Need for Growth:

    • Attract Investors          • Management of a Corporate Portfolio

    • Build for Future             • Minimally hold Market Position

    • Reward Stockholders      • Product Lifecycles inevitability

 

*Markets: Always change.

    1.) Growing Markets - Competitors are lulled to complacency

    2.) Stable Mature Market - Growth and profitability limited or 

         restricted

    3.) Declining Market - Sales and/or Profit dollars too low for

         standards

 

*It's as simple as picking 1, 2 or 3 to define yours. Each decision comes with it's own unique tools.

 

 

Decision Tree:  At any point in time a company has four alternatives:

    1.) Liquidate

    2.) Sell

    3.) Take on Investors

    4.) Continues to grow internally or externally

 

*It's as simple as picking 1, 2, 3 or 4 to define yours. Each decision comes with its own unique tools.

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Growth Management Portfolio Analysis

 

*3 Generic Growth Strategies:

     1.) Intensive; new product/market development, market

         penetration

    2.) Integrative; Vertical or Horizontal to improve efficiency and

         market leverage

    3.) Diversification; Outside current industry

 

*It's as simple as picking 1, 2 or 3 to define yours. Each decision comes with its own unique tools.

 

*Generic Product Strategies:

      1.) Defend - Market Leader

      2.) Attach - Challenge Strategies

      3.) Follow - Tuck in Behind Complacent Suppliers

      4.) Hide - NOT a long term viable strategy

 

*It's as simple as picking 1, 2, 3 or 4 to define yours. Each decision comes with its own unique tools.

 

Now that you have defined your critical factors and decisions to a growth strategy, proceed to GAP Analysis for more growth strategies and concepts.

    

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