Intensive growth strategy
Presentation on
Presented by:
Vidhi Vats Khushboo Gupta Shilpa Pal Parul Ahuja Priyanka Sharma Rashi Saili Sunita Singh
GROWTH
Growth is the natural by-product of a Some commonly used growth strategies
successful start-up.
include intensive growth strategies, integrative growth strategies, and diversification strategies.
INTENSIVE GROWTH STRATEGIES
This strategy takes advantage of an opportunity within a current market, using market penetration, market development and product development
The aim of intensive strategies is to broaden the
market share and to increase the profit by making the existing products more effective and by introducing new and various sets of products in order to increase the market share too.
These three strategies are referred as intensive strategies because they require intensive efforts of a firms competitive
position with existing products to improve.
In short
Intensive growth strategies
Exploit opportunity in the current
market
A business that wants to increase sales
to its target customers might use
intensive growth strategies.
MARKET PENETRATION STRATEGY...
A market-penetration strategy seeks to
increase market share for present products
or services in present markets through greater marketing efforts.
Market penetration includes increasing the number of salespersons, advertising expenditures, and publicity efforts or offering extensive sales promotion items.
Five guidelines for when market penetration is especially effective:
When current markets are not saturated. When usage rate of current customers could be increased. When market shares of major
competitors have been declining while total industry sales have been increasing.
When the correlation between dollar sales and dollar marketing expenditures historically has been high. When increased economies of scale provide major advantages.
Evaluating market penetration
The business is focusing on markets and
products it knows well.
It is likely to have good information on competitors and on customer needs. Unlikely to need significant new market research.
But will the strategy deliver enable the firm
to achieve its growth objectives?
Example of Market penetration strategy
Recognizing that software as a service can be a potent market penetration tool, Dell is assembling a services portfolio that now includes spam/virus via its e-mail disaster and One
recovery, archiving acquisition.
filtering Message
MARKET DEVELOPMENT STRATEGY...
Developing a new market for the existing company product is called market development strategy. This is the process of finding new market for the
new customer to increase company performance by
increasing sales and profits.
Companies can develop market on geographical such as city,country,region,state etc and demographical such as age,sex,gender,class etc.
Six guidelines for when market development may be an effective strategy
When new channels of distribution are available that are reliable, inexpensive, and of good quality. When an organization is very successful at what it does.
When
new
untapped
or
unsaturated
markets exist.
When an organization has the needed
capital and human resources to manage
expanded operations.
When
an
organization
has
excess
production capacity.
When an organizations basic industry
rapidly is becoming global in scope.
Evaluating market development
Often more risky than product development.
Existing products may not suit new markets
(exporting is often problematic). A logical strategy where existing markets are saturated or in decline. Significant government support for this
strategy particularly keen to encourage
international trade.
Market development strategy example
Pakistan State Oil (PSO) developing new market by exporting oil to Afghanistan. Chinese products developed new
market for their product worldwide.
PRODUCT DEVELOPMENT STRATEGY...
Product development
Product development is a strategy that seeks increased sales by improving or modifying present products or services.
Five guidelines for when to use product development
When an organization has successful products that are in the maturity stage of the product life cycle.
When an organization competes in an
industry that is characterized by rapid technological developments.
When major competitors offer betterquality products at comparable prices.
When an organization competes in a high-growth industry. When an organization has especially strong research and development capabilities.
Evaluating product development
A strategy that often plays to the strengths of
an established business.
Strong emphasis on effective market research (insights into customer needs) and successful innovation. A great way of exploiting the existing customer
base.
Being first to market is important.
Product development strategy example
Google developed a new browser
Chrome for the existing Internet user.
McDonalds is always within the fastfood industry, but frequently markets new burgers.
