Strategies For Growth - Amazon Web Services
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Strategies For Growth
Transcript of Strategies For Growth - Amazon Web Services
Strategies For Growth
Course Overview
Businesses intending to move from A to B must put
together a growth strategy that will enable it achieve it.
Growth strategies are set of plan, a kind of ladder, where
lower-level rungs present less risk but maybe less quick-
growth impact.
Course Objectives
i. Introduce Participants on how to develop strategies
for growth through innovation
ii. Introduce Participants on how to develop
strategies for growth through strategic alliances
such as joint ventures, collaborations, outsourcing
and franchising.
Course Outline
i. Intensive growth strategies
ii. Integrative growth strategies
iii.Strategic Alliances:
Intensive Growth Strategies
Market Segmentation
This concept is used to describe the a sub-set of a
market that is made up of people or organizations
with one or more characteristics that cause them
to demand similar goods/services based on
certain defined criteria unique to that segment.
Market Segment MUST meet the following criteria:
Distinct from other segments
Homogeneity of needs within the segment
Respond to the same market stimuli
Reached by market intervention
Market Segmentation contd...
These criteria are based on the following but not limited to:
Gender Price Interests Location Income... etc.
Market Segmentation contd...
Entry A Market Segment
Effective Marketing Pricing and Positioning Alternative Channels Product Development Financial Operational
NB: Entering a segment will necessitate the business owner to Conceptualizing the Whole Marketing Process…
Customers Company Competitors Collaborators Context
Marketing Analysis (The 5 C’s)
Marketing
Segmentation
Target
Market
Selection
Product and
Service
Positioning
Customer Acquisition Customer Retention
Profits
Creating
Value
Capturing
Value
Sustaining
Value
Product & Service
Pricing
Promotion Place/Channels
Marketing Mix (The 4 P’s)
Entry A Market Segment contd...
Integrative Growth Strategies
It is a strategy that describes how businesses use numerous markets to bring a type of product to the consumer. This occurs when a firm is being taken over by, or merged with, another firm which is in the same industry and in the same stage of production as the merged firm, e.g. a car manufacturer merging with another car manufacturer.
Horizontal Integration:
Economic of scale: this refers to the cost advantages that a business obtains due to expansion and its impact is observed in the reduction of the unit cost of the product.
Economics of scope: this concept refers primarily to reductions in average cost (cost per unit); that is, average cost/product is low as more of the same product is produced (printing)
Benefits of horizontal integration
Integrative Growth Strategies contd...
It describes companies in a supply chain owned and controlled by an individual whereby each company in the supply chain produces different product/services specific and made to satisfy a target market group. This concept was introduced and used by Andrew Carnegie and other businesspeople use the system to promote better financial growth and efficiency in their businesses.
Integrative Growth Strategies contd...
Vertical Integration
It seeks to increase profitability through greater sales
volume obtained from new products and new
markets.
Integrative Growth Strategies contd...
Diversification
Product Present New
Ma
rke
t Present Maket
Penetration Product
Development
New Market
Development Diversification
Diversification is part of the four main growth strategies defined by the Product/Market Ansoff matrix:
Integrative Growth Strategies contd...
Strategic Alliances
This defines the relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent business. Partners or businesses that have agreed to engage in strategic alliance may furnish the new business or alliance with resources such as products, distribution channels, intellectual property, manufacturing, etc.
Types of Strategic Alliances:
Collaborations
Franchising
Outsourcing
Strategic Alliances
Some reasons for Strategic Alliances:
Strategic Alliances contd...
Strategic Alliance
Market Size
Technological Transfer
Shared Risks
Economic Specialization
You
Competitor
Customers
Supplier
Who you can form Strategic Alliances with:
Strategic Alliances contd...
WHOWINS?
