Planning New Business

Planning New Business

PARAMJIT SHARMA

Desired sales

wth n gro atio rsific w th Dive e gro rativ Integ rowth sive g Inten

StrategicPlanning gap

Sales

Current Portfolio

0

5

Time (years)

Planning New Business

PARAMJIT SHARMA

Possible Options
Intensive Growth
Growth with current portfolio

Integrative Growth
Identify opportunities to build or acquire business that are related to company's current business

Diversification
Identify opportunities to add attractive businees that are unrelated to the company’s current business

Planning New Business

PARAMJIT SHARMA

Intensive Growth
Current Product New Product

Current Markets

1 Market Penetration Strategy 2 Market Development Strategy

3 Product Development Strategy 4 Market Diversification Strategy

New Market s

Planning New Business

PARAMJIT SHARMA

1 Market Penetration

•Ask Customers to buy •Ask Competitors ‘s customers to buy •Convince Non-users to start buying •Low prices More promotion

Planning New Business

PARAMJIT SHARMA

Market Development Strategy

Look for new Market From individual to office, to factory
market

Selling at new location-home or abroad
Planning New Business

PARAMJIT SHARMA

3 Product Development Strategy
(New Products in Current Market)

Develop new features Make the product larger Improve quality
Planning New Business

PARAMJIT SHARMA

Integrative Growth
Business Sales & Profits can be Increased through Backward, forward, ,horizontal integration within industry Acquiring one of suppliers ( Backward Integration ) Acquire wholesaler/ Retailer (Forward Linkages ) Acquire Competitors( Horizontal Integration)
Planning New Business

PARAMJIT SHARMA

Diversification Growth
When Good Opportunities Can be found Outside the present business 3 types of diversification 1 Concentric Diversification
New products, new technology But related with present product

2 Horizontal Diversification
New products ,new technology but unrelated 3 Conglomerate Diversification New Business, No relation with co.’s products Technology or markets
Planning New Business

PARAMJIT SHARMA

Down Sizing Old Business

PRUNING HARVESTING DIVESTING
Planning New Business

PARAMJIT SHARMA