14-1 Show Chapter 14 Strategies for Firm Growth Bruce R. Barringer R. Duane Ireland Chapter Objectives
14-2 Chapter Objectives
14-3 Internal and External Growth Strategies 14-4 Involve efforts taken within the firm itself, such as new product development, other product related strategies, and international expansion. Internal Growth Strategies Rely on establishing relationships with third parties, such as mergers, acquisitions, strategic alliances, joint ventures, licensing, and franchising. External Growth Strategies Internal and External Growth Strategies 14-5 Internal Growth Strategies 14-6 Other product- related strategies Advantages and Disadvantages of Internal Growth Strategies 14-7 Advantages Disadvantages
strategy can be difficult to recoup.
New Product Development
14-8 New Product Development 14-9 Keys to Effective New Product and Service Development
New Product Development 14-10 Common Reasons That New Products Fail
Other Product Related Strategies 4-11 Product Strategy Description Improving an Existing Product or Service Increasing Market Penetration Often a business can increase its revenues by simply increasing the quality of an existing product or service. Increasing the sales of a product or service through greater marketing efforts or through increased production capacity. Other Product Related Strategies 4-12 Product Strategy Description Extending Product Lines Geographic Expansion Making additional variations of a product so it will appeal to a broader range of clientele. Growth via expanding to additional geographic locations . International Expansion
14-13 International Expansion
14-14 International Expansion
14-15 External Growth Strategies 14-16 Licensing Strategic Alliances and Joint Ventures Advantages and Disadvantages of External Growth Strategies 14-17 Advantages Disadvantages
Mergers and Acquisitions
14-18 The Process of Competing an Acquisition 14-19 Licensing
14-20 Licensing 4-21 Type of Licensing Description Technology Licensing Merchandise and Character Licensing The licensing of proprietary technology that the licensor typically controls by virtue of a utility patent. The licensing of a recognized trademark or brand that the licensor typically controls through a trademark or copyright. Licensing 4-22
represented a major source of revenue for Pixar in its early years.
and Dory from Finding Nemo, adorn products as diverse as dinner plates and sleeping bags. Strategic Alliances
14-23 Strategic Alliances 4-24 Type of Alliance Description Technological Alliances Marketing Alliances Feature cooperation in R&D, engineering, and manufacturing. Typically match a company with excess distribution capacity with a company that has a product to sell. Joint Ventures
14-25 Joint Ventures 4-26 Type of Joint Venture Description Scale Joint Venture Link Joint Venture Partners collaborate at a single point in the value chain to gain economies of scale in production or distribution. Positions of the partners are not symmetrical, and the partners help each other access adjacent links in the value chain. Advantages and Disadvantages of Participating in Strategic Alliances and Joint Ventures 14-27 Advantages Disadvantages
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall What are the 4 growth strategies?The four growth strategies
These are Product, Placement, Promotion and Price. Where the Four Ps focus on audiences, channels & pricing, the Ansoff Matrix is more effective for a broader view of markets and uses the older Four P framework within each of the 4 Ansoff quadrants.
Which of the following is an example of external growth strategy?The correct answer is b. Improving an existing product or service . In business, the external growth strategy is the growth of a business using...
What are three main types of growth strategies?Types of Growth Strategies – 3 Important Types: Intensive Growth Strategies, Integrative Growth Strategies and Diversification Growth Strategies (With Examples)
What is a growth strategy explain growth strategy and its types in detail?A growth strategy is an organization's plan for overcoming current and future challenges to realize its goals for expansion. Examples of growth strategy goals include increasing market share and revenue, acquiring assets, and improving the organization's products or services.
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