Strategies for growth and managing the implications

Product
Existing Penetration
Development
Strategies
Strategies

MARKET

Market
Divercification
Development
New Strategies
Strategies

Existing New
PRODUCT
Penetration Strategies:
A strategy to grow by encouraging existing customers to buy more.
Types of Penetration strategies
1. Price Differentiation
2. Product Bundling
3. Customer Loyalty Programs
4. Product Improvements
5. Aggressive Marketing
6. Sales Promotions
7. Distribution Expansion
8. Niche Market Targeting:
Market Development Strategies
Strategies to grow by selling the firms existing products to new groups of customers.
1. Geographic Expansion
2. Market Segmentation
3. International Expansion
4. New Distribution Channels
5. Franchising
6. Strategic Alliances
 7. Acquisitions and Mergers
8. Joint Ventures
Product Development Strategies
Strategies to grow by developing and selling new products to existing customers who already purchase firms
existing products.
1. Continuous Innovation
2. New Product Launch
3. Prototype and Testing
4. Agile Development: Employing agile methodologies and iterative development cycles to quickly adapt
to changes and respond to customer feedback during the product development process
5. Market Research and Customer Feedback: Conducting thorough market research and actively
seeking customer feedback to identify pain points, unmet needs, and emerging trends. Startups can then
tailor their product development efforts to address these insights.
Diversification Strategies
A strategy to grow by selling a new product to a new market.
1. Backward Integration: Moving Backward in the value-added chain.
2. Forward Integration: Moving forward in the value-added chain.
3. Horizontal Integration: Same level, different value-added chain.
Value Added chain:
Raw Materials producer – Raw Materials wholesaler – Manufacturer – Finished Goods wholesaler – Retailer –
Customer
Implications of Growth for the Firm
 Pressure on existing financial resources
 Pressure on Human Resources
 Pressure on Management of Employees
 Time Pressure

To address these implications

Manage cash flow
Manage Inventory
Costs and Profits
Record Keeping
Outsourcing
Permanent and Part time distribution of employees.
Efficient time management culture.
Employee motivation
1. Recognition and Appreciation/Programs
2. Opportunities for Growth
3. Employee Involvement
4. Flexibility
5. Competitive Compensation
6. Autonomy
7. Team Building
8. Goal Setting
9. Work-Life Balance
10. Wellness Programs
11. Recognition from Leadership
12. Promote a Positive Company Culture
13. Regular Meetings
14. Monetary Incentives
15. Workplace Flexibility