Developing Strategies for Growth and Downsizing

Developing Strategies for Growth and Downsizing

Companies not only developing strategies for increasing their business portfolios but also plans for downsizing them.

What is Downsizing

Downsizing is when a company must prune, harvest, or divest businesses that are unprofitable or that no longer fit the strategy.

Product-Market Expansion Grid for Developing Strategy

It is marketing responsibility for attaining profitable growth for the firm. Marketing required recognizing, appraising, and picking market opportunities and set up developing strategies for seizing them. Product-Market Expansion Grid is useful device for identifying 4 strategies for future growth:

1. Market penetration
2. Product development
3. Market development
4. Diversification

Developing Strategies

Market Penetration Strategy

Companies grow by increasing their current products sales of to current market segments without any changing in the product. It is very simple; companies just bring a current product in a current market and just penetrate the market in a better way.

Market development

To identifying and develop new market segments for current company’s products which may grow the company. This can simply be achieved by identifying and developing new market segments for current products.

Product Development

Companies have to offer new or modified products to the current market segments. The company growth would then be achieved by offering modified or new products to current market segments.

Diversification

Companies grow by acquiring businesses outside the company’s current products and markets. This applies to new products and new markets. Therefore, the company starts up or buys businesses rather than current offering.

Watch Video on Developing Strategies for Growth and Downsizing