Planning New Business
Uploaded by
Paramjit SharmaPlanning New Business
Uploaded by
Paramjit SharmaPlanning New Business
Planning New
PARAMJIT SHARMA
Business
Desired
Strategic-
sales
n gr owth
f i catio Planning
r si
Dive e gr ow th gap
rativ
Integ
s i ve growth
Inten
Sales
Current
Portfolio
0 5
Time (years)
Planning New
PARAMJIT SHARMA
Business
Possible Options
Intensive Growth
Growth with current portfolio
Integrative Growth
Identify opportunities to build or acquire
business that are related to company's current
business
Diversification
Identify opportunities to add attractive businees
that are unrelated to the company’s current
business
Planning New
PARAMJIT SHARMA
Business
Intensive Growth
Current Product New Product
3 Product
1 Market
Current Development
Penetration
Markets Strategy
Strategy
2 Market 4 Market
New Development Diversification
Market Strategy Strategy
s
Planning New
PARAMJIT SHARMA
Business
1 Market Penetration
•Ask Customers to buy
•Ask Competitors ‘s customers to buy
•Convince Non-users to start buying
•Low prices More promotion
Planning New
PARAMJIT SHARMA
Business
Market Development Strategy
Look for new Market
From individual to office, to factory
market
Selling at new location-home or
abroad
Planning New
PARAMJIT SHARMA
Business
3 Product Development Strategy
(New Products in Current Market)
Develop new features
Make the product
larger
Improve quality
Planning New
PARAMJIT SHARMA
Business
Integrative Growth
Business Sales & Profits can be Increased
through Backward, forward, ,horizontal
integration within industry
Acquiring one of suppliers ( Backward
Integration )
Acquire wholesaler/ Retailer (Forward
Linkages )
Acquire Competitors( Horizontal Integration)
Planning New
PARAMJIT SHARMA
Business
Diversification Growth
When Good Opportunities Can be
found Outside the present business
3 types of diversification
1 Concentric Diversification
New products, new technology
But related with present product
2 Horizontal Diversification
New products ,new technology
but unrelated
3 Conglomerate Diversification
New Business, No relation with co.’s products
Technology or markets
Planning New
PARAMJIT SHARMA
Business
Down Sizing
Old Business
PRUNING
HARVESTING
DIVESTING
Planning New
PARAMJIT SHARMA
Business
