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8/12/2019 intensive growth strategy
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Presentation
onIntensive growth
strategyPresented by:Vidhi Vats
Khushboo Gupta
Shilpa PalParul Ahuja
Priyanka Sharma
Rashi Saili
Sunita Singh
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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.
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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.
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These three strategies are referred as
intensive strategies because they require
intensive efforts of a firms competitiveposition with existing products to improve.
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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.
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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.
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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.
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When the correlation between
dollar sales and dollar marketing
expenditures historically has been
high.
When increased economies of scale
provide major advantages.
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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?
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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.
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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.
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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.
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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.
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Market development strategyexample
Pakistan State Oil (PSO) developing
new market by exporting oil to
Afghanistan.
Chinese products developed new
market for their product worldwide.
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Product development
Product development is a strategythat seeks increased sales byimproving or modifying presentproducts or services.
PRODUCT DEVELOPMENTSTRATEGY...
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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.
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When an organization competes in ahigh-growth industry.
When an organization has especiallystrong research and developmentcapabilities.
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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.
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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.
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