Analysing the different growth strategies, available for different entrepreneurial ventures will help entrepreneurial ventures to. I will be going into depth about the different ideas, and means that are available. Showing my understanding of the external and internal effects that they will have on each individual business, not only in terms of its growth but also on its targets and aims as a whole. I will ensure to compare the benefits and drawbacks of each strategy and highlight the importance of why they must be carefully chosen for each individual firm. Making sure to identify and analyse the main four growth strategies these being; product development, diversification. Market development and market penetration. Which all fall under Ansoff's matrix, a theory that helps to identify growth opportunities. Source: http://www.tutor2u.net/business/strategy/ansoff_matrix.htm This topic is essential as it will allow for the entrepreneurs to achieve and sustain growth, not only this but in an efficient manner. One of the most important reasons for a business strategy is that they help organise a business and jump some of the first hurdles that every business will go through, for example the fact that 50% of businesses close within four years. (CITE) Growth strategies are incredibly important for entrepreneurial ventures as growth and are essential for longevity of any business, especially new and smaller businesses, as if they do not grow, they will eventually decline and fail. They are also about using the business to improve the benefits for its customers and creating value. The main idea of a business strategy is to achieve the goals and objectives of the company. Some of these could be to increase market share, increase turnover,... ... middle of paper ... ...ge share of the market as Taobao did. Showing that this strategy is effective for specific business and in this case not for eBay. Product development is another part of the Ansoff matrix. Product development is a strategy for enhancing benefits you deliver to customers by improving your existing products and services or developing new ones. The new product development process is a model that entrepreneurs use to help themselves to simplify product development and create an easier scale for them to follow. Source: http://www.innovationreactor.com/innovation_reactor/2008/12/the-new-product-development-process-part-3.html Product development is good to use for entrepreneurial ventures as there is only moderate risk, this due to the product already being known to be popular, however just not among a the city or country that the entrepreneur may be trying to break into.
a. Basically, corporation strategy demonstrates a corporation’s overall direction in the light of its general mindset toward growth and the management of its businesses and product portfolios. There are three crucial categories, which are stability, growth, and retrenchment, that involve within corporation strategy. Additionally, business strategy often occurs at the business unit or product level, and it highlights the improvement of the competitive position of a company’s products and service in the particular market segment served by the business unit. Competitive and cooperative strategies are two main categories that match within business strategy. Furthermore, functional strategy is the method that through a functional area to
There are five categories of new products: new inventions, new category entries, additions to product lines, product improvements, and repositioning target products to new markets for new uses. The process is the same regardless of the category. It includes idea generation, idea screening, concept development and testing, analyzing the business, prototype development, test marketing, and commercialization.
The next step is the growth stage. In this stage product growth is monitored and big investments are made. Maturity stage the growth of the outputs is significant. For the company to ensure product survival in the market and gain a competitive advantage over competitors it has to incorporate product differentiation. The final stage involves product decline stage. In this juncture product sale goes down and the product identification
Business strategy is the means by which firm’s plans to achieve its goals and objectives. It can also be termed as organization long-term planning. The strategy covers periods between 3-5 years and sometimes longer. Businesses use two major types of strategy, general or generic and competitive strategies. The overall strategy involves strategies of growth, globalization and retrenchment. The competitive advantage includes low pricing, product and customer differentiation. We will look at the business strategy used by Marks and Spenser (Cole, 1997). The company is a British multinational located at Westminster London and specializes in clothes and luxurious food products.
So, for the future, she must implement his strategies to continue and improve his efficacy and efficiency. To propose achievable strategies, we will use Ansoff matrix. This tool allows to classify and explain the different growth strategies for a company. Ansoff 's Matrix is also known as the market options matrix (Lynch, 2009, p.313) and is designed to identify “the product and market options available to the organization, including the possibility of withdrawal and movement into unrelated markets”. It is represented diagrammatically as follows.
By following closely the six steps of the new-product development process, the company could expect such benefits as: improved teamwork, less re-working, earlier detection of likely failure, and higher success rates. (Rix, Peter, 2001, Marketing, A Practical Approach).
The distinction between the start-up and growth stages in not easily defined. The distinction lies in the revenues, profits are stronger and are consistent with an increase in customers, as well as, new and exciting opportunities for the employees to pursue. Managers can look forward to many managerial challenges, perspective policy issues and re-evaluating the business plan for revisions. A manager’s focus should be in the running of the business, with a greater emphasis on accounting and human resource management systems. New staff will have to be hired, trained and prepared for the influx of business.
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.
Growth strategy is the organisation formulating their plan to accomplish their objectives and goals to grow in revenue and size of the business. However according to (Bridge, O’Neill and Cromie 2003), she defines growth strategy as a “...the movement of the business into bigger premises, taking on more staff, significant increases of turnover, taking on a new product line or lines, buying another business, and so on” Growth Strategies are important for businesses as they allow the business to move in a formal direction. Businesses can easily be affected by the smallest of changes for example new customers or the arrival of new competitors which could have a negative impact, so planning is very important and takes care of additional effort and resource for faster growth. With these growth strategies, organisations try to achieve numerous things for example, obtaining economies of scale, attaining market leadership and retaining talented staff.
Samsung’s product development includes all three approaches. Samsung invested in a Customer-centered new-product development. The new-product development focuses on finding new ways to solve customer problems and create more customers satisfying experiences. The “new management” is a top to...
A successful business strategy will identify changes in the external trends in the market place. Plan out what the company’s future direction is. Set out the goals for the management team. It will identify a vision of where the company wants to be in the future. Keep all employees informed of the direction of the company.
In the beginning lectures, I had no idea that brainstorming and conceptualizing an idea was part of an elaborate process to generate good product ideas. Great inspiration and a creative idea require deep thinking. I have learned that opportunity identification involves looking into the problems first rather than diving headfirst into the solution. Identifying and analyzing customer’s needs, market size, sustainability and scalability allows easy identification of low and high potential concepts. As stated in the article by Tim Brown (Brown, 2008), human-centric approach of innovation should be part of the design process as it gives insights into the life of an everyday person.
“The Ansoff Matrix (appendix C) shows four different growth strategies that result by combining existing or new products with existing or new markets: market penetration, market development, product development,and diversification” (Fadaei, 2014).
Before starting any business you should consider its objectives, in order to develop a strategy. It is the strategy that lays out how the objectives will be achieved and determines deadlines for achieving them. If and when the goals are reached the business will be successful.
To successfully launch new product into market, company should master product launch process. There are many concepts