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G2 - [BGS-1] Growth through Scaling (Growth Strategy (Risks (Growing too…
G2 - [BGS-1] Growth through Scaling
Growth Strategy
Growth Strategy
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
Risks
Growing too slow
grow to slow to catch up the market standard
Growing top line, not bottom line
cannibalizing our own sales
Growing too fast
grow dramatically beyond our resources and capabilities, in order to sustain in the long-term
Growing in the wrong direction
made strategic errors and predictions
overstreching
simply overextend
why grow?
Growth != more profits!
Growth = EOS/efficiency = profits?
maybe we can get profit through EOC
Pressure to grow
Growth != more market share!
maybe will reduce profit, but increase the market share
TO CREATE VALUE
Businesses must grow
Ways to Grow
Growth through Market Entry
Offering new products in existing markets or the same products in new markets
Growth through Acquisition
purchase another firm & make it become subsidiary
Growth through Scailing
Doing more of what it's already doing
Growth through Innovation
the development of ways to create & deliver value
Growth Alternatives
growth is not always imperative
New ventures
oftentimes might pursue a slower growth strategy
Niche market firms
Lifestyle companies aimed at a very specific demographic
Successful, slow growth firms
Growth through Scailing
formulate a plan that is robust to different scenarios
Internationalization analysis
stakeholder analysis
diversification(portifolio planning)
capabilities analysis
scenario planning
Scenario Planning
Steps
Construct scenarios
“Write” your scenarios
identify key trends and
uncertainties
Reflect on current strategy
1.identify key strategic issue
Definition
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
How to formulate
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
purpose
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
Identify a ‘high growth potential’ market segment
Analysis of industry structure and
competitive dynamics
Competitive lifecycle analysis
Environmental analysis
Analysis of competitive position
Competitor analysis