Presentation on:

Growth Strategies

Prepared By:
Sushil Regmi
MBA 3rd Sem (Finance)
Roll no. 42
 Introduction:
Growth of a business enterprise implies realignment of its
product-market environment.
Growth strategy:
Growth strategy is one of strategy option adopted to
accelerate the growth of sales, profits and market shares
faster than the past years by entering new markets,
acquiring new resources, developing new technologies and
creating new managerial skills.
 Reasons for Growth strategies

It is the most important strategic option which company pursues

so as to fulfill its long- term objectives.

 To maintain competitive position in rapidly growing national

and overseas markets.

To provide attractive remuneration and job satisfaction for

employees

To reduce the cost of production using division of labour and

economies of scale of operations.
 Growth Strategies:

Source: H.I Ansoff, corporate strategy: An analytical Approach to Business Policy for Growth and Expansion. New York: McGraw- Hill.
1965
 Market Penetration:
When a firm believes that there exists ample opportunities for its
current products in its current domestic and overseas markets which if
exploited through more aggressive efforts can augment sales and
market share, it pursues the market penetration approach.

Examples:
Godrej has adopted market penetration strategy.

Similarly, Titan its endeavor to capture Indian market adopted

market penetration strategy.
 Market Development:
In market development approach a firm seeks to increase sales by
taking its product into new markets.

Examples:

IBM uses market development strategy to exploit vast potentials of

Indian market.

Tata Tea uses market development strategy to spearhead its entry into
the world market of packet teas.
  Product Development:
Expansion through product development consists of the development
of new improved products for its current markets.

Examples:
Samsung (TV) use this strategy by introducing Slim line TV and
Plasma TV
 Diversification Strategies:
Growth through branching out into new areas

i. horizontal integration – expanding across the general industry

(e.g. Coke acquires Minute maid).
ii. vertical integration – expanding into industries populated by
suppliers/buyers (e.g. Ford buys steel plant).

iii. conglomerate diversification – expanding into unrelated

industries (e.g. GM buys Hershey’s candy).

iv. joint venture – expanding together with another company in

order to diversify efficiently.
THANK
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