Managing and Growing

an Entrepreneurial Firm
Chapter 14
Session 13
Chapter Objectives

 Explain the difference between internal growth strategies and

external growth strategies.
 Discuss a market penetration strategy.
 Identify a promising acquisition candidate’s characteristics.
 Explain “licensing” and how it can be used as a growth strategy.
 Explain “strategic alliances” and describe the difference
between technological alliances and marketing alliances.
 Explain “joint ventures” and describe the difference between a
scale joint venture and a link joint venture.
Internal Growth Strategies

 New Product Development.

Internal Growth Strategies

Other product related strategies:

 Improving an existing product or service.
 Increase market penetration of existing product or service.
 Increasing advertising expenditure
 Lowering price.
 Increasing size of sales force.
 Increasing social media efforts.
 Celebrity endorsement.
 Sales promotions.
Internal Growth Strategies
 Product line extension
 Geographical extension.
 Selling overseas.
Internal Growth Strategies
External Growth Strategies

 Finding an appropriate acquisition candidate.

 Licensing
Strategic alliances and Joint Ventures

 Technological alliances
 Marketing alliances
 Joint ventures.