‘Growth Strategy’ refers to a strategic plan formulated and implemented for expanding firm’s business.
Strategy is the determination of the basic long term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary to carry out these objectives”. Given below is a list of the main growth strategies available to firms:
1. Intensive Growth Strategy (Expansion)
2. Diversification
3. Modernization
4. External Growth Strategy
(a) Mergers
(b) Joint Ventures
Growth Strategy refers to a strategic plan formulated and implemented for expanding firm’s business. This can be done in various ways described in the presenation
Firms consider pursuing various market segments as part of their overall growth strategies, which may include the four major strategies that are:Market Penetration, Market Development, Product Development and Diversification.
This presentation ion tell about the growth strategies that how various successful firms have adopted and got success.
This presentation analyses strategic options of growing a business. It begins with an understanding of the term—growth. This understanding helps in appreciating various growth strategies available to companies.
The document discusses the Ansoff Matrix, which is a tool that helps businesses decide growth strategies. It outlines four growth strategies based on whether a business markets new or existing products in new or existing markets:
1) Market penetration involves selling existing products in existing markets.
2) Market development involves selling existing products in new markets.
3) Product development involves introducing new products into existing markets.
4) Diversification involves marketing new products in new markets and carries the most risk.
This document provides background information on Procter & Gamble (P&G), including its founding in 1837, operations in over 180 countries, and organization into three global business units. It also presents P&G's mission to provide superior quality products that improve lives and allow prosperity. Strengths, weaknesses, opportunities, and threats are analyzed in a SWOT matrix. A BCG matrix charts P&G products along axes of relative market share and market growth, categorizing products as stars, cash cows, question marks, or dogs.
Procter & Gamble is a multinational consumer goods company founded in 1837. The marketing plan focuses on expanding P&G's global market share through innovation, acquisition, and strengthening its portfolio of leading brands like Tide, Pampers, and Head & Shoulders. Key competitors include Unilever, Kimberly-Clark, and Johnson & Johnson. The plan outlines strategies for market penetration, development, and diversification to maintain P&G's position as a top global marketer.
Growth strategies aim to increase the size and scale of operations through internal expansion or external diversification. Mergers and acquisitions are common external growth strategies where two companies combine. A merger is a friendly combination where both companies cease to exist, while an acquisition sees one company take over the other. Joint ventures involve forming a new entity together for a specific project while maintaining the parent companies. Strategic alliances focus on sharing resources rather than control, allowing companies to gain expertise and synergies without a full combination. Both mergers and alliances can provide benefits but also risks around integration and conflicting goals.
This document provides a strategic report on Procter & Gamble (P&G). It discusses P&G's overview as a Fortune 500 company with $82.6 billion in sales in 2011. It then analyzes P&G's strengths, weaknesses, opportunities, and threats through a SWOT analysis. The report also examines P&G's product differentiation, distribution strategy of intensive distribution through multiple channels, promotion strategy of heavy advertising, and pricing strategies of optional features and competitive pricing.
Growth Strategy refers to a strategic plan formulated and implemented for expanding firm’s business. This can be done in various ways described in the presenation
Firms consider pursuing various market segments as part of their overall growth strategies, which may include the four major strategies that are:Market Penetration, Market Development, Product Development and Diversification.
This presentation ion tell about the growth strategies that how various successful firms have adopted and got success.
This presentation analyses strategic options of growing a business. It begins with an understanding of the term—growth. This understanding helps in appreciating various growth strategies available to companies.
The document discusses the Ansoff Matrix, which is a tool that helps businesses decide growth strategies. It outlines four growth strategies based on whether a business markets new or existing products in new or existing markets:
1) Market penetration involves selling existing products in existing markets.
2) Market development involves selling existing products in new markets.
3) Product development involves introducing new products into existing markets.
4) Diversification involves marketing new products in new markets and carries the most risk.
This document provides background information on Procter & Gamble (P&G), including its founding in 1837, operations in over 180 countries, and organization into three global business units. It also presents P&G's mission to provide superior quality products that improve lives and allow prosperity. Strengths, weaknesses, opportunities, and threats are analyzed in a SWOT matrix. A BCG matrix charts P&G products along axes of relative market share and market growth, categorizing products as stars, cash cows, question marks, or dogs.
Procter & Gamble is a multinational consumer goods company founded in 1837. The marketing plan focuses on expanding P&G's global market share through innovation, acquisition, and strengthening its portfolio of leading brands like Tide, Pampers, and Head & Shoulders. Key competitors include Unilever, Kimberly-Clark, and Johnson & Johnson. The plan outlines strategies for market penetration, development, and diversification to maintain P&G's position as a top global marketer.
Growth strategies aim to increase the size and scale of operations through internal expansion or external diversification. Mergers and acquisitions are common external growth strategies where two companies combine. A merger is a friendly combination where both companies cease to exist, while an acquisition sees one company take over the other. Joint ventures involve forming a new entity together for a specific project while maintaining the parent companies. Strategic alliances focus on sharing resources rather than control, allowing companies to gain expertise and synergies without a full combination. Both mergers and alliances can provide benefits but also risks around integration and conflicting goals.
This document provides a strategic report on Procter & Gamble (P&G). It discusses P&G's overview as a Fortune 500 company with $82.6 billion in sales in 2011. It then analyzes P&G's strengths, weaknesses, opportunities, and threats through a SWOT analysis. The report also examines P&G's product differentiation, distribution strategy of intensive distribution through multiple channels, promotion strategy of heavy advertising, and pricing strategies of optional features and competitive pricing.
The document discusses various growth strategies for organizations, including internal strategies like expansion, modernization, and diversification as well as external strategies like mergers, acquisitions, and joint ventures. Internal strategies relate to developing new products and services, expanding existing lines, and reaching new markets. External strategies involve combining with or purchasing other companies in order to enter new sectors, gain economies of scale, or access new technologies and markets. The document provides examples and definitions of different strategies.
International Environment
Strategies to go global
The document discusses various strategies for companies to expand their business globally, including internal and external growth strategies. Internal strategies include intensification through market penetration, market development, and product development. External strategies include diversification, mergers and acquisitions, collaboration, and establishing multinational/transnational corporations through foreign direct investment in multiple countries. MNCs/TNCs help integrate the world economy but can also negatively impact local industries and communities.
Tide is a laundry detergent manufactured by Procter & Gamble that was first introduced in 1946. It has maintained a high market share and growth in the United States for over 60 years through changes to its formula, packaging, and advertising. When analyzed using the BCG matrix, Tide detergent is classified as a star product due to its high market share and growth. Tide Boost is classified as a cash cow due to its large market share in a mature market. When analyzed using the GE matrix, Tide is considered highly attractive due to its substantial market share and annual growth rate, and it has strong business units producing different products, so it should be invested in for further growth.
P&G is an American multinational consumer goods company founded in 1837. It has a revenue of $84.17 billion and operates in 180 countries with 300 brands. P&G focuses on health care, beauty, grooming, fabric and home care, baby and family care, snacks and pet care, and household care. It has strong brands but growth is challenging due to its large size. Opportunities exist in emerging markets but there are also threats from competition, economies, consumers, and raw materials. P&G spends heavily on R&D, innovation, marketing, and acquisitions to drive growth. Its supply chain and distribution strategies aim to be demand-driven.
Business Strategies: Developing a Growth StrategyUnique Project
Growing your business is essential for long term success. But what are the best ways to grow? What strategies are effective for securing and sustaining long term business growth?
Procter & Gamble focused on three key issues: innovation through research and development which led to successful products but also cost control issues, reaching unserved markets through detailed branding and customer-centric marketing, and developing its global presence through local advertising, sponsorships, celebrity endorsements, and digital/social media marketing. P&G took a scientific approach to connecting R&D with sales and marketing and built global product strategies to encourage innovation. It identified customer segments and designed innovative products to communicate its focus on innovation. As P&G worked towards serving 5 billion consumers globally, its evolving marketing capabilities remained central to its growth.
Igor Ansoff was a Russian-American applied mathematician and business manager known as the "father of strategic management". He introduced several important strategic management concepts, including the product-market growth matrix, environmental turbulence, and vertical/horizontal integration. Ansoff taught strategic management as formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives by adapting to the business environment through strategic planning.
Growth strategies in Strategic ManagementZeba Rukhsar
This document discusses various growth strategies that organizations can pursue, as presented by Zeba Rukhsar of Utkal University. It describes internal growth strategies that rely on using existing resources to increase production, employees, sales and develop new products. It also discusses concentration strategies that focus on a specific technology, product or market. The document outlines different types of diversification strategies, such as conglomerate diversification into unrelated businesses. It provides examples of vertical integration strategies like backward integration through acquiring suppliers, and forward integration by acquiring distributors. The benefits of vertical integration strategies are also highlighted.
The document discusses generic strategies, grand strategies, and strategic management concepts such as diversification, turnaround strategies, and corporate combinations. It provides examples of various strategies including concentrated growth, market development, product development, innovation, horizontal and vertical integration, concentric and conglomerate diversification, divestiture, liquidation, and bankruptcy. Specific strategies and requirements for their implementation are outlined. The document also discusses the Tata Group as a case study of an Indian business house.
This document discusses various expansion strategies for companies, including integration, diversification, cooperation, and internationalization. It defines different types of integration like vertical and horizontal. It also defines different types of diversification like concentric and conglomerate diversification. Cooperation strategies discussed include mergers, takeovers, joint ventures, and strategic alliances. Examples of integrated companies like Apple and vertically integrated industries like oil are provided. Benefits and limitations of horizontal integration are also summarized.
P&G established a global knowledge management system to spur innovation. The system aimed to tap into external knowledge and ideas to supplement internal R&D. It created CONNECT+DEVELOP hubs with entrepreneurs and used online communities to share knowledge globally across business units. The changes helped cure a "Not Invented Here" attitude by respecting knowledge from outside the company and improving links between problem identification, external learning, internal sharing, and globalizing innovations.
Intensive & integration strategies....mineFarhan Ahmad
Unilever Pakistan uses various intensive and integration strategies for its brands. For brands like Clear, Badam, Vim, Walls, and Lifebouy, Unilever uses a market penetration strategy focusing on greater marketing efforts. For Vaseline and Sunsilk, Unilever uses a market development strategy to enter new markets. Domex and Fair & Lovely Men were introduced using a product development strategy. Horizontally, Unilever acquired Polka Ice Cream, Knorr, and Glaxose-D brands. Unilever does not engage in forward or backward integration strategies.
Diversification involves expanding a firm's business activities beyond its current products and markets. It allows firms to grow rapidly by entering new business fields. There are three main ways firms diversify: acquisitions, internal startups, and joint ventures. Diversification can be related, where new businesses are related to the firm's existing value chains, or unrelated where the businesses are completely different. Examples of related diversification include Johnson & Johnson expanding into different healthcare products, while General Electric and Virgin have diversified into both related and unrelated industries.
P&G is the world's largest consumer goods company and operates in India through subsidiaries. To strengthen its presence in India and increase sales 20-fold by 2015, P&G India launched "Project 2-3-4" aiming to double users, triple spending per user, and quadruple net sales. P&G distributes products through a limited number of large distributors to extend reach across India in an efficient and high-volume manner.
Procter & Gamble is a multinational consumer goods company founded in 1837. It has a diverse portfolio of brands and generates over $76 billion in annual revenue. P&G's mission is to improve lives through innovation and leadership in branded products and services. To reach a global customer base, P&G utilizes various marketing strategies including strong branding, innovation, advertising, sponsorships, celebrity endorsements, and a commitment to understanding consumer needs. Looking ahead, P&G will need to continue focusing on digital marketing, social media, and developing communities to engage new customers in a changing industry landscape.
Blue Sky Organic Ventures Strategic Alliancesmarksv47
BlueSky Organic Ventures was founded in 2009 to provide business development, advisory, and strategic alliance services to companies in the natural, organic, and gluten-free lifestyle sectors. The company looks to partner with firms that offer unique products or brands and help them develop sustainable revenue channels in emerging markets through strategic partnerships. BlueSky was founded by Mark Vitcov who has over 17 years of experience in finance and private equity and has raised over $125 million for companies. One of BlueSky's core services is helping companies form strategic alliances to leverage growth, reduce costs and risks, and increase competitiveness and brand equity.
This document summarizes information about Procter & Gamble (P&G), a multinational consumer goods company. It outlines P&G's mission to provide superior quality products that improve lives, lists its CEO and headquarters, and describes its portfolio of over two dozen $1 billion brands. The document also provides financial highlights, showing P&G's annual net sales ranging from $64.4 billion to $78.9 billion from 2006 to 2010. Additionally, it summarizes P&G's marketing strategies, research methods, and SWOT analysis.
An American multinational, founded in 1837 by William Proctor and James Gamble
They began by supplying the Union Army with soap and candles
Products include pet foods, cleaning agents, health care and personal care products
Chairman, President & CEO: AG Lafley
In 2014, P&G recorded $83.1 billion in sales
Nearly 300 brands in more than 160 countries
Worldwide workforce of 135,000
140 plants and 25 R&D centers globally. Spend nearly $ 2 billion a year on R&D
presentation on strategies adopted by P&GDebasis Sahoo
P&G is a Fortune 500 company headquartered in Cincinnati, Ohio that manufactures consumer goods. It has a diversified brand portfolio and focuses on research and development. P&G's mission is to provide superior quality products that improve consumers' lives now and for future generations. Its objectives include organic sales growth above market rates and investing more in R&D for product innovation. P&G adopts strategies such as heavy advertising, pricing across different approaches, and operating globally to achieve its objectives.
P&G has been conducting market research since 1837 to understand customer needs and preferences. It established a dedicated market research department in 1924 and developed both qualitative and quantitative research tools. Through the extensive use of tools like blind tests, concept testing, and surveys, P&G gains insights into new product ideas and ensures existing products meet customer needs. The company also diversified its product portfolio across multiple categories and geographic regions based on market research findings.
This document discusses the Ansoff Matrix, which is a tool used by firms to analyze growth strategies. It describes the four strategies in the matrix - market penetration, product development, market development, and diversification - and provides examples of each. Market penetration focuses on increasing sales of existing products to an existing market and has the lowest risk. Diversification, which involves entering a new market with new products, is the riskiest strategy. The document emphasizes understanding customers and differentiating products to mitigate risks when pursuing growth.
This document discusses various corporate growth strategies, including integration, diversification, and cooperation strategies. It provides examples of each type of strategy and defines key related concepts. The main points are:
1) Integration strategies involve combining related business activities, such as backward integration into suppliers or forward integration into distribution. Examples include General Motors acquiring steel plants and P&G potentially sharing paper production plants.
2) Diversification strategies involve entering new unrelated or related business lines. Types of diversification include concrete/related diversification and conglomerate/unrelated diversification.
3) Cooperation strategies involve partnerships or mergers between firms, including horizontal, vertical, and conglomerate mergers between related or unrelated companies.
The document discusses various growth strategies for organizations, including internal strategies like expansion, modernization, and diversification as well as external strategies like mergers, acquisitions, and joint ventures. Internal strategies relate to developing new products and services, expanding existing lines, and reaching new markets. External strategies involve combining with or purchasing other companies in order to enter new sectors, gain economies of scale, or access new technologies and markets. The document provides examples and definitions of different strategies.
International Environment
Strategies to go global
The document discusses various strategies for companies to expand their business globally, including internal and external growth strategies. Internal strategies include intensification through market penetration, market development, and product development. External strategies include diversification, mergers and acquisitions, collaboration, and establishing multinational/transnational corporations through foreign direct investment in multiple countries. MNCs/TNCs help integrate the world economy but can also negatively impact local industries and communities.
Tide is a laundry detergent manufactured by Procter & Gamble that was first introduced in 1946. It has maintained a high market share and growth in the United States for over 60 years through changes to its formula, packaging, and advertising. When analyzed using the BCG matrix, Tide detergent is classified as a star product due to its high market share and growth. Tide Boost is classified as a cash cow due to its large market share in a mature market. When analyzed using the GE matrix, Tide is considered highly attractive due to its substantial market share and annual growth rate, and it has strong business units producing different products, so it should be invested in for further growth.
P&G is an American multinational consumer goods company founded in 1837. It has a revenue of $84.17 billion and operates in 180 countries with 300 brands. P&G focuses on health care, beauty, grooming, fabric and home care, baby and family care, snacks and pet care, and household care. It has strong brands but growth is challenging due to its large size. Opportunities exist in emerging markets but there are also threats from competition, economies, consumers, and raw materials. P&G spends heavily on R&D, innovation, marketing, and acquisitions to drive growth. Its supply chain and distribution strategies aim to be demand-driven.
Business Strategies: Developing a Growth StrategyUnique Project
Growing your business is essential for long term success. But what are the best ways to grow? What strategies are effective for securing and sustaining long term business growth?
Procter & Gamble focused on three key issues: innovation through research and development which led to successful products but also cost control issues, reaching unserved markets through detailed branding and customer-centric marketing, and developing its global presence through local advertising, sponsorships, celebrity endorsements, and digital/social media marketing. P&G took a scientific approach to connecting R&D with sales and marketing and built global product strategies to encourage innovation. It identified customer segments and designed innovative products to communicate its focus on innovation. As P&G worked towards serving 5 billion consumers globally, its evolving marketing capabilities remained central to its growth.
Igor Ansoff was a Russian-American applied mathematician and business manager known as the "father of strategic management". He introduced several important strategic management concepts, including the product-market growth matrix, environmental turbulence, and vertical/horizontal integration. Ansoff taught strategic management as formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives by adapting to the business environment through strategic planning.
Growth strategies in Strategic ManagementZeba Rukhsar
This document discusses various growth strategies that organizations can pursue, as presented by Zeba Rukhsar of Utkal University. It describes internal growth strategies that rely on using existing resources to increase production, employees, sales and develop new products. It also discusses concentration strategies that focus on a specific technology, product or market. The document outlines different types of diversification strategies, such as conglomerate diversification into unrelated businesses. It provides examples of vertical integration strategies like backward integration through acquiring suppliers, and forward integration by acquiring distributors. The benefits of vertical integration strategies are also highlighted.
The document discusses generic strategies, grand strategies, and strategic management concepts such as diversification, turnaround strategies, and corporate combinations. It provides examples of various strategies including concentrated growth, market development, product development, innovation, horizontal and vertical integration, concentric and conglomerate diversification, divestiture, liquidation, and bankruptcy. Specific strategies and requirements for their implementation are outlined. The document also discusses the Tata Group as a case study of an Indian business house.
This document discusses various expansion strategies for companies, including integration, diversification, cooperation, and internationalization. It defines different types of integration like vertical and horizontal. It also defines different types of diversification like concentric and conglomerate diversification. Cooperation strategies discussed include mergers, takeovers, joint ventures, and strategic alliances. Examples of integrated companies like Apple and vertically integrated industries like oil are provided. Benefits and limitations of horizontal integration are also summarized.
P&G established a global knowledge management system to spur innovation. The system aimed to tap into external knowledge and ideas to supplement internal R&D. It created CONNECT+DEVELOP hubs with entrepreneurs and used online communities to share knowledge globally across business units. The changes helped cure a "Not Invented Here" attitude by respecting knowledge from outside the company and improving links between problem identification, external learning, internal sharing, and globalizing innovations.
Intensive & integration strategies....mineFarhan Ahmad
Unilever Pakistan uses various intensive and integration strategies for its brands. For brands like Clear, Badam, Vim, Walls, and Lifebouy, Unilever uses a market penetration strategy focusing on greater marketing efforts. For Vaseline and Sunsilk, Unilever uses a market development strategy to enter new markets. Domex and Fair & Lovely Men were introduced using a product development strategy. Horizontally, Unilever acquired Polka Ice Cream, Knorr, and Glaxose-D brands. Unilever does not engage in forward or backward integration strategies.
Diversification involves expanding a firm's business activities beyond its current products and markets. It allows firms to grow rapidly by entering new business fields. There are three main ways firms diversify: acquisitions, internal startups, and joint ventures. Diversification can be related, where new businesses are related to the firm's existing value chains, or unrelated where the businesses are completely different. Examples of related diversification include Johnson & Johnson expanding into different healthcare products, while General Electric and Virgin have diversified into both related and unrelated industries.
P&G is the world's largest consumer goods company and operates in India through subsidiaries. To strengthen its presence in India and increase sales 20-fold by 2015, P&G India launched "Project 2-3-4" aiming to double users, triple spending per user, and quadruple net sales. P&G distributes products through a limited number of large distributors to extend reach across India in an efficient and high-volume manner.
Procter & Gamble is a multinational consumer goods company founded in 1837. It has a diverse portfolio of brands and generates over $76 billion in annual revenue. P&G's mission is to improve lives through innovation and leadership in branded products and services. To reach a global customer base, P&G utilizes various marketing strategies including strong branding, innovation, advertising, sponsorships, celebrity endorsements, and a commitment to understanding consumer needs. Looking ahead, P&G will need to continue focusing on digital marketing, social media, and developing communities to engage new customers in a changing industry landscape.
Blue Sky Organic Ventures Strategic Alliancesmarksv47
BlueSky Organic Ventures was founded in 2009 to provide business development, advisory, and strategic alliance services to companies in the natural, organic, and gluten-free lifestyle sectors. The company looks to partner with firms that offer unique products or brands and help them develop sustainable revenue channels in emerging markets through strategic partnerships. BlueSky was founded by Mark Vitcov who has over 17 years of experience in finance and private equity and has raised over $125 million for companies. One of BlueSky's core services is helping companies form strategic alliances to leverage growth, reduce costs and risks, and increase competitiveness and brand equity.
This document summarizes information about Procter & Gamble (P&G), a multinational consumer goods company. It outlines P&G's mission to provide superior quality products that improve lives, lists its CEO and headquarters, and describes its portfolio of over two dozen $1 billion brands. The document also provides financial highlights, showing P&G's annual net sales ranging from $64.4 billion to $78.9 billion from 2006 to 2010. Additionally, it summarizes P&G's marketing strategies, research methods, and SWOT analysis.
An American multinational, founded in 1837 by William Proctor and James Gamble
They began by supplying the Union Army with soap and candles
Products include pet foods, cleaning agents, health care and personal care products
Chairman, President & CEO: AG Lafley
In 2014, P&G recorded $83.1 billion in sales
Nearly 300 brands in more than 160 countries
Worldwide workforce of 135,000
140 plants and 25 R&D centers globally. Spend nearly $ 2 billion a year on R&D
presentation on strategies adopted by P&GDebasis Sahoo
P&G is a Fortune 500 company headquartered in Cincinnati, Ohio that manufactures consumer goods. It has a diversified brand portfolio and focuses on research and development. P&G's mission is to provide superior quality products that improve consumers' lives now and for future generations. Its objectives include organic sales growth above market rates and investing more in R&D for product innovation. P&G adopts strategies such as heavy advertising, pricing across different approaches, and operating globally to achieve its objectives.
P&G has been conducting market research since 1837 to understand customer needs and preferences. It established a dedicated market research department in 1924 and developed both qualitative and quantitative research tools. Through the extensive use of tools like blind tests, concept testing, and surveys, P&G gains insights into new product ideas and ensures existing products meet customer needs. The company also diversified its product portfolio across multiple categories and geographic regions based on market research findings.
This document discusses the Ansoff Matrix, which is a tool used by firms to analyze growth strategies. It describes the four strategies in the matrix - market penetration, product development, market development, and diversification - and provides examples of each. Market penetration focuses on increasing sales of existing products to an existing market and has the lowest risk. Diversification, which involves entering a new market with new products, is the riskiest strategy. The document emphasizes understanding customers and differentiating products to mitigate risks when pursuing growth.
This document discusses various corporate growth strategies, including integration, diversification, and cooperation strategies. It provides examples of each type of strategy and defines key related concepts. The main points are:
1) Integration strategies involve combining related business activities, such as backward integration into suppliers or forward integration into distribution. Examples include General Motors acquiring steel plants and P&G potentially sharing paper production plants.
2) Diversification strategies involve entering new unrelated or related business lines. Types of diversification include concrete/related diversification and conglomerate/unrelated diversification.
3) Cooperation strategies involve partnerships or mergers between firms, including horizontal, vertical, and conglomerate mergers between related or unrelated companies.
Corporate level strategies are basically about the choice of direction that a firm adopts in order to achieve its objectives.
Corporate strategy is essentially a blueprint for the growth of the firm.
The corporate strategy sets the overall direction for the organization to follow.
It also spells out the extent, pace and timing of the firm’s growth.
A growth strategy entails introducing new products, features, or markets in order to expand business and keep up with competitors. There are two main types of growth strategies: internal growth strategies that rely on a company's own resources like product expansion, modernization, and diversification; and external growth strategies that involve acquiring other companies through mergers, acquisitions, joint ventures, or strategic alliances. Internal growth allows slow, planned development while external growth uses other companies' resources to rapidly expand.
This document discusses marketing strategies used by multinational companies (MNCs) in Pakistan. It provides details on the strategies of LG Electronics, Unilever, and Coca-Cola. LG targets upper-middle class consumers and focuses on major urban areas. It spends 6-7% of revenue on marketing including sponsorships and advertisements. Unilever has operated in Pakistan since 1948 and produces home and personal care goods. It uses various marketing strategies discussed later. Coca-Cola focuses on sports sponsorships and uses local celebrities in advertisements to appeal to Pakistani consumers.
This document summarizes a website called roots2grow.com that provides market analysis services to help small and medium sized manufacturers and distributors develop growth strategies. It offers both standard and customized projects to analyze a company's market potential and identify opportunities. A case study is described of how roots2grow helped a small plastic cap manufacturer analyze its market and develop a strategy to grow beyond its existing stagnant business through operational improvements and exploring new market segments.
A detailed discription about MNCs, history of MNCs, features , benefits to home and host countries, entry strategies and the growth strategies adopted by MNCs with pros and cons and the role of mncs in India.
Procter & Gamble (P&G) is the world's largest consumer goods company, with over $80 billion in annual sales. It owns many iconic brands like Tide, Pampers, Bounty, and Gillette. The document discusses P&G's history, brands, innovation focus, mission/vision, and marketing strategies. It emphasizes P&G's global reach, serving 4.2 billion people in 180 countries, and its commitment to innovation to continuously improve people's lives through superior products.
The document discusses various strategic management tools and concepts including:
- Types of business strategies such as market penetration, product development, diversification, integration, and retrenchment.
- Analytical tools for strategic analysis including SWOT, BCG matrix, SPACE matrix, IE matrix, and Grand Strategy matrix.
- The setting of strategic objectives including examples of strategic objectives related to market share and financial objectives related to revenues, profits, and other metrics.
The document discusses various strategic management tools and concepts including:
- Types of business strategies such as market penetration, product development, diversification, and integration.
- Analytical tools for strategic analysis including SWOT, BCG matrix, SPACE matrix, IE matrix, and Grand Strategy matrix.
- The process of setting strategic objectives including making them specific, measurable, achievable, realistic, and time-bound. Examples of strategic and financial objectives are provided.
The document discusses various strategic management tools and concepts including:
- Types of business strategies such as market penetration, product development, diversification, integration, and retrenchment.
- Analytical tools for strategic analysis including SWOT, BCG matrix, SPACE matrix, IE matrix, and Grand Strategy matrix.
- The setting of strategic objectives including examples of strategic objectives related to market share and financial objectives related to revenues, profits, and other metrics.
The document discusses Ansoff's Product-Market Expansion Grid, which outlines four strategies for business growth: market penetration, market development, product development, and diversification. It defines each strategy and provides examples. Market penetration involves selling more of existing products to existing customers. Market development means finding new markets for existing products. Product development is creating new products for existing markets. Diversification is the riskiest strategy, focusing on new products and new markets.
Business Plan (Group_ Marvel).pptx.pdfMarlboroRed2
The startup plan is for an herbal hair oil business called "স্বেকশ". Key points:
- The mission is to fulfill customers' hair oil needs through expert consultation and high-quality homemade products. Customers can choose ingredients for their specific needs.
- The management team includes a CEO, heads of sales, marketing, technology, finance, and human resources.
- The target customer is people aged 18-45 in suburban and urban areas interested in herbal hair oils.
- Competition includes other homemade hair product brands but the advantage is expert advice and customization.
- Financial projections estimate an initial investment of 500,000 BDT,
The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
P&G is a global consumer products company founded in 1837. It has over two dozen $1 billion brands including Pampers, Tide, Bounty, Folgers, Pringles, Charmin, Swiffer, and Crest. P&G uses customer-focused strategies like neglected customer needs, consistent brand development, product differentiation, and brand extension. It employs intensive, extensive, and specialty distribution. Promotion strategies include heavy advertising, celebrity endorsements, and coupons. P&G focuses on research and development, design innovation, and understanding customers to maintain strong brand images and market leadership across many categories.
This document provides information about the marketing strategies of P&G Pakistan for its brand Safeguard soap. It discusses P&G's portfolio in Pakistan, a SWOT analysis of P&G, product profile of Safeguard soap, segmentation strategies, positioning, pricing, distribution, and advertising strategies. The document aims to provide high-level information about P&G's overall marketing approach and strategies for Safeguard soap.
Growth Strategies or Expansion Strategies
There are several ways for a business to grow or expand, including developing new products, entering new markets, increasing marketing, mergers and acquisitions, franchising, licensing, and initial public offerings. Ansoff's Growth Matrix is a common framework that considers growth through new and existing products and markets. Effective strategies require understanding customer needs, competitors, and having a clear vision and sales process. Examples demonstrate techniques like product diversification, market penetration, and market or product development.
Every company desiring to stay competitive must design broad competitive marketing strategies by which it can gain a sustainable competitive advantage. But what broad marketing strategies might the company use? Which ones are best for a particular company or for the company’s different divisions and products? No one strategy is best for all companies. Each company must determine what makes the most sense given its position in the industry and its objectives, opportunities, and resources. Even within a company, different strategies may be required for different businesses or products. Johnson & Johnson uses one marketing strategy for its leading brands in stable consumer markets, such as BAND-AID, Tylenol, Listerine, or J&J’s baby products, and a different marketing strategy for its high-tech health-care businesses and products, such as Monocryl surgical sutures or NeuFlex finger joint implants. So you understand that no one best strategy truly exist for all firms. But which strategy is best for which company? This chapter attempts an appropriate respond to the question.
Strategic marketing planning involves matching a company's resources with market opportunities over the long run. It includes developing a mission, objectives, strategies, and tactics. The annual marketing plan operationalizes the strategic plan through situation analysis, objectives, strategies, tactics, financial schedules, and evaluation procedures. Strategic business units allow separate definition and profit responsibility for distinct businesses. Growth-share matrices assess businesses across industry attractiveness and competitive strength.
A micro manager is a boss or manager who gives excessive supervision to employees. A micro manager, rather than telling an employee what task needs to be accomplished and by when, will watch the employee's actions closely and provide frequent criticism of the employee’s work and processes.
for understanding of managers and how to be a better one.
In international marketing, the marketers are required to come up with a decision as to whether they are going to standardize the product or to modify the existing products which is one of the challenging decisions that they have to make. And this decision can make impacts on the organization in terms of the Research and development expenses, finance, production, organization structure, procurement, marketing mix etc. And the decision as to which to choose depending on the attitudes towards the different cultures. So in this article, we are going to cover these two concepts so that you can have an idea about the two concepts in depth.
Internal and external analysis of fords motor. to bettter understand the automobile industry.this includes its SWOT, PESTEL, FINANCIAL analysis. plus trends and future.
This model aimed to provide a new way to use effective strategy to identify, analyse and manage external factors in an organization’s environment.
• Porter’s five forces model is an analysis tool that uses five industry forces to determine the intensity of competition in an industry and its profitability level.
• An attractive market place does not mean that all companies will enjoy similar success levels. Rather, the unique selling propositions, strategies and processes will put one company over the other.
• The Five Forces were Porter’s conclusions on the reasons for differing levels of competition, and hence profitability, in differing industries. They are empirically derived, i.e. by observation of real companies in real markets, rather than the result of economic analysis.
If you’re responsible for introducing customers to a company or a product for the first time, there’s something you need to watch out for. It’s called the curse of knowledge, and it can affect anyone who creates brand messaging, website copy, tutorials, or onboarding processes. The curse of knowledge is widely defined as:
The curse of knowledge is a cognitive bias that occurs when an individual, communicating with other individuals, unknowingly assumes that the others have the background to understand.
The curse of knowledge means that the more familiar you are with something, the harder it is to put yourself in the shoes of someone who’s not familiar with that thing. You can’t unlearn what you’ve learned, and you can’t see it with fresh eyes anymore. Plus, you have a much harder time explaining the basics to people who are new to the subject because you can’t remember what questions you had when you were new to the subject.
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2. MEANING OF GROWTH STRATEGIES
• ‘Growth Strategy’ refers to a strategic plan formulated and implemented for
expanding firm’s business.
• Strategy is the determination of the basic long term goals and objectives of an
enterprise and the adoption of courses of action and the allocation of resources
necessary to carry out these objectives”.
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3. GOALS OF GROWTH STRATEGIES
(i) Strategy which involves holding the relative position of the firm in a high-growth product market
areas.
(ii) Increase market share in market.
(iii) Hold strong relative position in market: use excess cash flow, funds capability and other resources
• to support penetration of multi-national markets with existing product line.
• to support penetration of new product market areas domestically.
• to diversify markets
• to diversify products
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4. TYPES OF GROWTH STRATEGIES
Given below is a list of the main growth strategies available to firms:
1. Intensive Growth Strategy (Expansion)
2. Diversification
3. Modernization
4. External Growth Strategy
(a) Mergers
(b) Joint Ventures
We will cover all of these in the slides ahead
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5. PRODUCT-MARKET MATRIX AND
GROWTH STRATEGY
Products
Markets
Present New
Present Market Penetration
(Penetrate existing
markets with existing
products)
Product development
(Introduce new
products in existing
markets)
New Market Development
(Enter new markets
with existing Products)
Diversification
(Introduce new
products in new
markets)
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Product-Market Matrix and Growth Strategy
6. INTENSIVE GROWTH STRATEGY
• Intensive growth strategy or expansion involves increasing the sales revenue, profit
and market share of the existing product line, services or market. The firm slowly
but regularly expands its production and so it is called internal growth strategy.
• Three alternative strategies are available for expansion. These are:
(a) Market Penetration
(b) Market Development
(c) Product Development
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7. MARKET PENETRATION
Under this strategy the firm aims at increasing the sale of present
product in the existing market through aggressive promotion. The
firm penetrates deeper into the market to capture a larger share
of the market. These steps enable the company to increase its
following 3 steps:
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8. 2) Including customers through mass media to buy its products more
frequently and in larger quantities- Nescafe using TV commercials promoting
the idea of cold coffee during the summer season, the idea of instant coffee,
instant tea and tea bags.
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9. 1) Attracting existing customers by providing better service and improving
brand image of the product – Loyalty cards and points at various clothing
stores, including westide, pantaloons etc.
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10. 3) Initiating price reduction and offensive advertising programmes to convert
potential customers into real customers. - Reliance Jio cutting providing free
internet as a aggressive marketing strategy and providing services at a lower
rate compared to its competitors and increasing market share through price
competition.
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11. MARKET DEVELOPMENT
It implies increasing sales by selling present products in the new and unexplored
markets. Generally, it is possible through the appointment of sales agents and
dealers, development of new channels of distribution, franchising etc. Thus, in
market development process, the firm tries to move into new geographical areas
with its existing products. However, the firm should try to incorporate some minor
modifications if any in existing products the local conditions of that particular
geographical area.
For example
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12. Selling coca cola in rural areas or
Sale of chocolates to middle aged and old persons.
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13. Kellogg's trying to capture Indian market by introduction of breakfast cereals in
Indian market
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14. • McDonald’s modified their menu for indian consumer before trying to launch in
Indian markets, this can be called a combination of product and market
development
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15. PRODUCT DEVELOPMENT
In this, the firm tries to grow by developing improved products for the present
market. It incorporates improvements in the quality and standard of the existing
product as well as launching of new product in the market. Product development is
made possible through
(1) Launching of new product through research and development,
(2) Product innovation.
For example,
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16. In early 2000s Air conditioner with remote control,
Recently, Refrigerator with flexible changes in compartments
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17. • Constant changes in smart phones
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18. DIVERSIFICATION
• Beyond a certain point, it is no longer possible for a firm to expand in the basic
product market. So the firm seeks to increase sales by developing new products.
This strategy towards growth is called diversification. Diversification does not
simply involve adding variety in the existing product line but adding completely
different line of products. Products added may be complementary. Diversification
is a widely used strategy for growth. Many companies have opted for
diversification as a growth strategy.
• For example,
• LIC, an insurance corporation originally, diversified into mutual funds.
• State Bank of India diversified into merchant banking and mutual funds.
• Similarly, Larsen and Toubro, an engineering company diversified into cement.
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19. A firm may choose to grow by using diversification strategy under the following
conditions:
(a) When the firm cannot attain its growth target by expansion alone.
(b) When diversification promises greater profitability than expansion.
(c) When the financial resources of the firm are much in excess of the
requirements of expansion.
The distinction between intensive growth strategy and diversification strategy must
be carefully noted. In the case of intensive growth, the firm increases the production
and sale of its existing products or markets. But in case of diversification, new
products and new markets are added.
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20. Ansoff’s Diversification Matrix
New functions Related
Technology
New Products Unrelated
Technology
Firm is its own
customer
Vertical Integration
Same type of product Horizontal
Diversification
Similar type of product Marketing and
Technology related
concentric
diversification
Marketing related
concentric
diversification
New type of product Technology related
concentric
diversification
Congomerate
Diversification
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21. TYPES OF DIVERSIFICATION:
1. Vertical Diversification (Integration)
2. Horizontal Diversification:
(a) Concentric Diversification and
(b) Conglomerate Diversification
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22. VERTICAL DIVERSIFICATION
(INTEGRATION)
• In this type of growth strategy new products or services are added which are
complementary to the existing product or service line. New products serve the
firm's own needs by either supplying inputs or serve as a customer for its output.
It involves moving backward or forward from the present product or service. Thus
vertical integration may be of two types—backward and forward.
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23. BACKWARD INTEGRATION
It implies moving backward toward the source of raw materials. Firms integrate
backwards to produce their own inputs or raw materials. Rather than buying the
inputs from outside sources, firms manufacture their own inputs.
Example:
Reliance Industries Ltd. has achieved remarkable growth through backward
integration. It started business with textiles and went for backward integration to
produce PFY and PSF, critical raw materials for textiles, then started producing PTA
and MEG, raw materials for PFY and PSF, then paraxylene, raw material for PTA and
MEG, and finally naphtha for producing paraxylene.
Sugar mills having their own sugarcane farms are said to have diversified through
backward integration.
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24. Backwards Vertical Integration
Acquiring suppliers
Tire
Company
Glass Company Metal
Company
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25. FORWARD INTEGRATION
Forward integration involves the entry of a firm into the business of finishing,
distributing or selling its existing products. It refers to moving higher up in the
production/distribution process towards the ultimate consumer. It involves entry of
the firm into distribution outlets to maintain direct control with their customers. The
firm develops outlets for the use/sale of its own products. Rather than selling the
product through middlemen firms that diversify through forward integration
maintain their own sales outlets. For example, many textile companies like DCM,
Bombay Dyeing, Reliance and Raymonds have set up their own retail distribution
system to sell their fabrics.
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27. Balanced Vertical Integration
Acquiring distributors & suppliers
Design Production
Retail Stores
Distribution
Advertising
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28. HORIZONTAL DIVERSIFICATION
It involves addition of parallel new products to the existing product line.
This may happen internally or externally.
(i) Internal Diversification:
Firms use their own resources to add new products to their existing line of products.
For example,
Reliance industries have diversified into areas like textiles, telecommunications, etc.
Godrej manufactures steel almirahs, refrigerators and locks through its own
resources. This is internal diversification.
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29. (ii) External Diversification: when new products and services are added through
mergers and acquisitions, it is known as external diversification.
Horizontal Diversification can be of two types i.e. concentric diversification and
conglomerate diversification
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30. CONCENTRIC DIVERSIFICATION
When a firm enters into some business which is related with its present business in terms of technology, marketing or
both, it is called concentric diversification. In technology-related concentric diversification new product or service is
provided with the help of existing or similar technology.
For example,
Nestle added 'Tomato Ketchup' and 'Maggi Noodles' to its range of baby food Cerelac. In marketing-related
concentric diversification, the new product or service is sold through the existing distribution system.
or instance, a hire-purchase firm may start providing lease finance for purchase of consumer durables.
Concentric diversification may be employed for the following purposes:
(a) To counteract cyclical fluctuations in the present products or services;
(b) To utilise the cash flows generated by the existing product or service;
(c) To face saturation of demand for present product or service;
(d) To gain managerial expertise in new field of business; and
(e) To capitalise on the reputation of present product or service.
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32. Concentrated Companies
McDonalds, Wal-Mart and Starbucks
All growing by concentrating on their
primary business areas and domestic
expansion
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35. AOL TIME WARNER
Growth strategies By: Arushi Gupta and Advitiya
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TNT
Road Runner
Time Magazine
Hanna - Barbera Cartoons Fortune
Compuserve
36. CONGLOMERATE DIVERSIFICATION
In this growth strategy a firm enters into business which is unrelated to its existing business
both in terms of technology and marketing. Several Indian companies have adopted this
strategy. DCM, Essar group, ITC, Godrej, Hyderabad Allwyn, HMT are examples of
conglomerate diversification.
Conglomerate diversification strategy may be adopted for the following reasons:
(i) To achieve a growth rate higher than what can be realised through expansion;
(ii) To make better use of financial resources with retained profits exceeding immediate
investment needs;
(iii) To avail of potential opportunities for profitable investment;
(iv) To achieve distinctive competitive advantage and greater stability;
(v) To spread the risks; and
(vi) To improve the price earning ratio and market price of the company’s shares
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41. MODERNIZATION
An existing business unit may plan to grow through Modernization of operations.
Modernization basically involves upgradation of technology to increase productivity,
efficiency and product quality and to reduce wastages and cost of production in the
long-run. The worn-out and obsolete machines and equipment are replaced by the
modern machines and equipment. Modernization plans can have the following
implications:
(i) A firm may resort to Modernization to maintain its position in the market. Thus,
the purpose of Modernization would be stability in operations in the coming years.
(ii) Modernization may be pursued with full vigour to stimulate internal growth.
Thus, it is used as an internal growth strategy.
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42. MERGER
Merger is an external growth strategy. When different companies combine together
into new corporate organizations, such a process is known as mergers. Merger can
occur in two ways:
(a) Acquisition or takeover- Takeover or acquisition takes place when a company
offers cash or securities in exchange for the majority shares of another company.
It involves one company acquiring control over another.
(b) Amalgamation - Amalgamation takes place when two or more companies
roughly of equal size or strength formally submerge their corporate identities
into a single one in a friendly atmosphere.
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43. JOINT VENTURE
When two or more firms mutually decide to establish a new enterprise by
participating in equity capital and in business operations, it is known as joint
venture. A joint venture is a business partnership between two or more companies
for a specific business operation. Joint venture can be with a firm in the same
country or a foreign country.
For example, Birla Yamaha Ltd. is a joint venture of Birla and Yamaha Motor Co. of
Japan, DCM and Daewoo Corporation of Korea established DCM Daewoo Motors
Ltd. Hindustan Computers Ltd. and Hewlett - Packard of USA formed HCL-HP Ltd,
a joint venture company.
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