GROWTH STRATEGIES

• The adoption and implementation of a growth strategy is one of the most important
considerations for every organization.
• Are strategies that are carefully studied and deliberated carried out by organizations for
the following reasons:
• They want to survive the hypercompetitive environment and not perish
• They want to increase their earnings or income
• They want to crate their advantage among competitors.
• They may want to increase their market leadership in a given industry
• Is a mode adopted by an organization to achieve its main objectives of increasing in
volume and turnover.
• It can be internal or integral
INTERNAL GROWTH STRATEGIES
• This are approaches adopted within the company.
• These broad growth strategies can be the following:
• Market Penetration
• Market Development
• Product Development
• Diversification.
 Current Products “New” Products
Current Market Market Penetration Product Development
New Market Market Development Diversification
COMPETITIVE STRATEGIES
• Are designed to deal with this so-called reality of hyper-competition.
• Are essentially long-term action plans prepared with the end goal of directing how an
organization will survive and compete.
• Competition comes in distinctive forms.
• It may be in the product/service of the company like design, functionality, and versatility, pricing of products
/service offerings like warranties and after-sales services.
• Types of Competitive strategies consist of the following:
• Low-cost leadership Strategy
• Broad differentiation Strategy
• Best-cost provider Strategy
• Focused/Market-niche lower cost strategy based on lower cost
• Focused/Market-niche differentiation strategy
Competitive
Cost Leadership Differentiation Market Niche
Strategies
Low-cost leadership Best-cost provider Focused/Market-niche
Cost Leadership lower cost strategy
strategy strategy
Best-cost provider Broad differentiation Focused/Market-niche
Differentiation strategy differentiation strategy
strategy
OTHER COMPETITIVE STRATEGIES
• Innovation Strategy
• It is to radically catapult or leapfrog the organization by introducing completely
new and highly differentiated products and services that give an organization a
competitive posturing
• Operational Effectiveness Strategy
• Is to make an organization perform better by making the structure lean,
streamlining wasteful and inefficient processes, harnessing better facility and
equipment maintenance and increasing work force productivity.
OTHER COMPETITIVE STRATEGIES

• Economies of Scale
• It lowers cost because of the volume.
• Technology Strategy
• The advantage of gearing toward technology cannot be overemphasized.
LIFE CYCLE STRATEGIES
 STABILITY
STRATEGIES
RETRENCHMENT STRATEGIES

• Modes of dealing with this situation

• Liquidation
• Divestment
• Turnaround Strategy
LIQUIDATION
DIVESTMENT
TURNOVER STRATEGY
TURNAROUND STRATEGY MODEL

Production & Operation Finance

Climate & Culture Infrastructure

Products
and
Services