Growth strategies

• A corporation’s  directional strategy is composed of three general orientations (grand strategies):
• Growth strategies expand the company’s activities
• Stability strategies make no change to the company’s current activities
• Retrenchment strategies reduce the company’s level of activities.

Each strategy has its  own specific strategies (see next figure). 

• GROWTH STRATEGIES:-  By far the most widely pursued corporate  directional strategies are those designed   to achieve growth in sales, assets, profits,  etc. Firms that do business in expanding  industries must grow to survive.
• A corporation can grow internally by expanding its operations both globally and domestically, or it can grow externally through mergers, acquisitions, and strategic alliances.
• See next figure for basic growth strategies. If a strategy of diversification is chosen, the firm has decided that its product range and market scope are no longer adequate.

Concentration  Strategies:

• Merger
• Acquisition
• Take-over
• Strategic alliance
• Vertical growth
• Vertical integration
• Backward integration
• Forward integration
• Transaction cost economics
• Horizontal growth
• Horizontal integration

• Diversification strategies:   When a company operates in multiple industries  or markets simultaneously. Two strategies-
• Concentric (related) diversification: when multiple lines of businesses are linked like Pepsi, that focus on providing snack-type products. Each are powerful brands.
• Conglomerate (unrelated) diversification: when a firm’s businesses share few, if any, common attributes. GE has mix of businesses in aviation, energy, transport, oil, plastics, equipments, etc…