(G1) [BGS] (week1) Growth through Scaling:Lessons: Growth Strategy (Team…
(G1) [BGS] (week1) Growth through Scaling:Lessons: Growth Strategy
Economies of scale / efficiency
To create value
More market share
Pressure to grow
3.Strategy and Growth
How growth needs to be strategic?
Strategy = creating values
Will this potential growth opportunity allow us to create/enhance the valuable competitive position?
Growing too fast
For example, Southwest Airlines
Growing too slow
For example, My Space
Overstretching or Over extending
For example, Borders Books & Music
Growing top line, not bottom line
For example, Krispy Kreme Doughnuts
Growing in the wrong direction
For example, Borders Books and Music
"Smart Growth" Questions
Why should we grow?
How much should we grow?
Are we ready to grow?
What are the best ways for us to grow?
What are the risks of growth?
How can we manage those risks?
Niche Market Firms
Successful, Slow growth firms
How to grow?
Consistent with company purpose
Growth through scaling/market entry/acquisition/innovation
Rapid growth/great potential for growth
eg: Chipotle Mexican Grill
niche market firms
success in particular geographic setting
success inparticular customers
fail in the big growth phase
no ambition to experience rapid growth
risky for new ventures
successful slow growth firm
careful and methodical about how it grows
clear about their purpose