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Company Growth Strategy Primer
William Baker ConsultingMarketing StrategyCommunication StrategyBrandingAdvertising
Award Winning Author, Professor and Consultant619-402-3990, [email protected]
Google Scholar Page: https://scholar.google.com/citations?hl=en&user=If0w9hoAAAAJ
Market Orientation: Customer Satisfaction as an Organizing Principle of the Firm
Evolve the brand through an advanced understanding of:
Customers (e.g., Benefits Sought, Satisfaction, Perceptions, etc.)
The environmental factors that influence customers (e.g., technology, competition, the economy, socio-cultural trends, etc.)
Market Information
Responsiveness
Market Information
Dissemination
Market Information Acquisition
Market Orientation
Market Orientation
Entrepreneurial Orientation: The Pursuit of New Opportunity as an Organizing Principle of the Firm
Revolutionize the brand by successfully predicting:
How evolving customer needs create new product opportunities
How evolving environmental factors (e.g., technology, competition, the economy, socio-cultural trends, etc.) create new opportunity
How restructuring the firm’s resources and capabilities will facilitate product and market innovation
Innovativeness
Proactivity
Risk-Taking
Entrepreneurial
Orientation
Entrepreneurial Orientation
Know Thyself
O Firms with strong Entrepreneurial Orientations (EO) are associated with strong innovation capabilities
O However, A strong EO is characterized by behaviors that produce high levels of risk.
O Firms must objectively assess whether they have the mindset and capabilities to actualize a strong entrepreneurial orientation.
Growth Strategy: Angle 1Strong
EntrepreneurialOrientation
Weak Entrepreneurial
Orientation
StrongMarket
Orientation
FIRST MOVER(Does not fit most
Firms)
FAST FOLLOWER(Most Firms can
adopt)
WeakMarket
Orientation
SHOOTING IN THE DARK
(Bad Idea)
LOW COST
(Does not fit most Firms)
Social Capital and Fast FollowingInside Your Industry“No company today, no matter how large or how global, can innovate fast enough or big enough by itself. Collaboration – externally with consumers and customers, suppliers and business partners, and internally across business and organizational boundaries – is critical” --A.G. Lafley, CEO of P&G
Outside Your IndustryMark Parker, the CEO of Nike, works with a global network of tattoo and graffiti artists, DJs, fashion designers, musicians, and industrial designers to broaden the scope of Nike’s innovation activities
Fast Following with weak EO is Leveraged by Social Capital
New ProductsAs % ofSales
Strong EO
Weak Social Capital
Strong Social Capital
Weak EO
Growth Strategy: Angle 2
ExistingGeographic
Market
New GeographicMarket
Existing ProductMarket
Market Penetration
MarketDevelopment
NewProductMarket
Product Development
Diversification
Growth Strategy: Angle 3
Classic Ways to Compete
1. Category Leader – The Standard for the Category
2. Cost Leadership -- Basic benefits at lower price
3. Differentiate – Superior in some focused area
4. Head-On - Requires resources of the leader, generally damages industry profitability
Growth Strategy: Angle 3
Innovation-Based Strategies to Compete
1. Disruptive Innovation (generally in established markets) -- Simplify the product to key benefits – lower overall cost.
2. Radical Innovation – Render the category obsolete by revolutionizing benefit delivery with a new technological platform
3. 3, Incremental Innovation - Minor changes to existing products using existing technological platform (85% of innovations, but add little to the bottom line)
