【G4】Growth through Scaling (Growth (Growth Risk (in the wrong direction,…
【G4】Growth through Scaling
Test robustness against a range of alternative futures.
Generate strategic options
Avoid group think.
Robust to different future scenarios.
Alternative to making a "Single-Point forecast"of the future.
Growth through Scaling
Doing more of what you're already doing
Formulate a plan that is robust to different scenarios
Diversification(portfolio planning analysis)
Analyzing Firm Capabilities
Identify a “high growth potential” market segment
Analysis of Competitive Position
Determining Competitive Position
Competitive Lifecycle Analysis
Analysis of industry structure and competitive dynamics
Five Force Analysis
Foundations of Business Strategy
Contextual, competitive, organizational
Large potential impact
understanding the risk
reflect your current strategy &strategic decision
Identify the key trends and uncertainties.
Prioritize uncertainties: Which are most important or uncertain
Distinguish trends from uncertainties
visualize scenario (4 different scenarios)
plausible & creative
Two different outcomes arising from each of the two uncertainties
Select two of the most important uncertainties, plot on axes
What's strategic growth?
Consistent with company's purpose
in the wrong direction
top line but no bottom line
too fast or too slow
Strategy and Growth
valuable competitive position?
The intersection of values, capabilities , opportunities
Niche market firms
successful and slow
Organic growth through innovation
Growth through acquisition
Growth via market entry
Growth though scaling
There are many reasons for convincing a firm to growth.
How value is going to be created?
Growth is going to enable you to create more value.