G2 - [BGS-1] Growth through Scaling
Growth Strategy
Growth through Scailing
Growth Strategy
Risks
why grow?
Ways to Grow
Growth through Market Entry
Growth through Acquisition
Growth through Scailing
Growth through Innovation
Growth != more profits!
Growth = EOS/efficiency = profits?
Pressure to grow
Growth != more market share!
Growing too slow
Growing top line, not bottom line
Growing too fast
Growing in the wrong direction
overstreching
intentiontional and proactive
help you advance your strategy, mission and purpose
decision for a firm whether or not to grow, how to grow
through the grow to achieve whatever you want to achieve
Businesses must grow
maybe we can get profit through EOC
maybe will reduce profit, but increase the market share
the development of ways to create & deliver value
purchase another firm & make it become subsidiary
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TO CREATE VALUE
Offering new products in existing markets or the same products in new markets
Doing more of what it's already doing
simply overextend
grow dramatically beyond our resources and capabilities, in order to sustain in the long-term
Growth Alternatives
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growth is not always imperative
New ventures
Niche market firms
Successful, slow growth firms
grow to slow to catch up the market standard
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oftentimes might pursue a slower growth strategy
Lifestyle companies aimed at a very specific demographic
cannibalizing our own sales
formulate a plan that is robust to different scenarios
Scenario Planning
Identify a ‘high growth potential’ market segment
made strategic errors and predictions
Internationalization analysis
stakeholder analysis
diversification(portifolio planning)
capabilities analysis
scenario planning
Analysis of industry structure and
competitive dynamics
Competitive lifecycle analysis
Environmental analysis
Analysis of competitive position
Competitor analysis
Steps
Definition
- Construct scenarios
- “Write” your scenarios
- identify key trends and
uncertainties
- Reflect on current strategy
1.identify key strategic issue
How to formulate
It's a framework that's essentially helpful in formulating a strategy.
helpful at the beginning of a strategy process and usefullater after the strategy was formulated
purpose
Contingency planning for multiple possible futures
Structures our analytical thinking about these uncertain futures
generate multiple scenarios of the future
Identifies trends and uncertainties
Stress test for our strategy
help you formulate and then assess the robustness of a strategy against a number of uncertainties as we look into the future
Pushes the strategist to step outside one’s particular assumptions about the future