intensive growth strategy

8/12/2019 intensive growth strategy

1/21

Presentation

onIntensive growth

strategyPresented by:Vidhi Vats

Khushboo Gupta

Shilpa PalParul Ahuja

Priyanka Sharma

Rashi Saili

Sunita Singh


2/21

GROWTH

Growth is the natural by-product of a

successful start-up.

Some commonly used growth strategies

include intensive growth strategies,

integrative growth strategies, anddiversification strategies.


3/21

INTENSIVE GROWTHSTRATEGIES

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.


4/21

These three strategies are referred as

intensive strategies because they require

intensive efforts of a firms competitiveposition with existing products to improve.


5/21

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.
http://www.mba-tutorials.com/wp-content/uploads/2009/08/605rad15_fig1.jpg


6/21

MARKET PENETRATIONSTRATEGY...

A market-penetration strategy seeks to

increase market share for present products

or services in present markets throughgreater marketing efforts.

Market penetration includes increasing the

number of salespersons, advertising

expenditures, and publicity efforts or

offering extensive sales promotion items.
http://www.mba-tutorials.com/wp-content/uploads/2009/08/605rad15_fig1.jpg


7/21

Five guidelines for when market

penetration is especially effective: When current markets are not saturated.

When usage rate of current customerscould be increased.

When market shares of major

competitors have been declining while

total industry sales have been increasing.


8/21

When the correlation between

dollar sales and dollar marketing

expenditures historically has been

high.

When increased economies of scale

provide major advantages.


9/21

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?


10/21

Example of Market penetrationstrategy

Recognizing that software as a service

can be a potent market penetration tool,

Dell is assembling a services portfolio

that now includes e-mail disaster

recovery, spam/virus filtering and

archiving via its Message One

acquisition.
http://www.mba-tutorials.com/wp-content/uploads/2009/08/market_expan.jpg


11/21

MARKET DEVELOPMENTSTRATEGY...

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.
http://www.mba-tutorials.com/wp-content/uploads/2009/08/market_expan.jpghttp://www.mba-tutorials.com/wp-content/uploads/2009/08/market_expan.jpg


12/21


13/21

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.


14/21

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.


15/21

Market development strategyexample

Pakistan State Oil (PSO) developing

new market by exporting oil to

Afghanistan.

Chinese products developed new

market for their product worldwide.


16/21

Product development

Product development is a strategythat seeks increased sales byimproving or modifying presentproducts or services.

PRODUCT DEVELOPMENTSTRATEGY...


17/21

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 better-

quality products at comparable prices.


18/21

When an organization competes in ahigh-growth industry.

When an organization has especiallystrong research and developmentcapabilities.


19/21

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 customerbase.

Being first to market is important.


20/21

Product development strategy

example Google developed a new browser

Chrome for the existing Internet user.

McDonaldsis always within the fast-

food industry, but frequently markets

new burgers.


21/21

Documents

intensive growth strategy