According to Growing a company by international acquisition (n.d.) there are two major ways of growing a business: organic or inorganic. The decision which one is the best solution for a given company depends on the market, trends and the resources of the company. In most cases organic growth is constant and an ongoing process while the inorganic growth happens when the company decides to widen its options. Organic growth happens when a company is using its own resources, opportunities and advantages to improve profitability. Usually this happens by one or more combined: - Expanding sales (inbound, outbound) activities to reach more customers - New product launch to increase market share - Marketing activities
International Expansion: Davis Case Study The natural course of life for business is to grow. A company wants to grow to increase profits, to increase customer base, to increase its value, to innovate, to enter new markets, to build new product base, etc. The key is to develop, plan and execute a strong growth strategy. The strategy should outline what business or market to expand to, when to expand and how to expand. There are two ways in which a company can expand: Organically and inorganically (Growing a company by international acquisition, 2008).
Concentric diversification strategy is a growth strategy that involves expansion into related products or services that are clearly differentiated or distinct from the firm 's current business (Barnat, 2014). Firms diversify into related businesses when there is some kind of strategic fit between the two businesses. Strategic fit exists when businesses have sufficiently related activities in the value chain that offer competitive advantage of lower costs, economies of scale (combining activities into a larger scale operation), economies of scope (ability to eliminate costs by doing things together rather than independently) and transfer of managerial skills and expertise. This competitive advantage increases a business performance (Bae, Kwon, & Lee, 2008). The goal of related diversification is to achieve strategic fit.
University of the People Student X Course: BUS 2207 Instructor: Marchelle Land Date: May 25, 2016 1) Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing: The first major way in which a company can grow is innovation and taking risks. Innovative processes will help the company in which a company can grow because the innovative processes of company are able to create new markets. The example of the innovative processes of a company is introduction of new products or services because it can be the process of the existing market collapse. Also, innovative processes will be with taking risks.
a. Organic Growth: is an expansion strategy whereby demand for existing business is increased through strategies that create an increase in the market demand for the existing product or a new market in the same or different geographical region. Some companies capitalize on various macro-economic indicators in different countries to expand their existing products or services. Also, favorable treaties, legislation or agreements between or among nations can also give existing companies opportunity to expand into other countries
This will give opportunity to assess attractiveness of focused industry to managers and elaborate into and If it is feasible or profitable to enter the new market and to see probable risk before entering.The other benefit of the five forces model is that We can feed the other strategic managemeny tools such as value chain ,strategic canvas or swot with findings and outcomes of Five Forces
This has enabled these top players put into practice and dictate the direction of technological advancements in different industries (Radjou, N., Prabhu, J., & Ahuja, S, 2012). For Samsung to expand its markets and increase its financial returns, a search for international markets has become the primary concern. This has also assisted them to dominate international networks, acquire relevant knowledge, increase competitiveness, and hence survive (Storey, D.J., and Greene, F.J,
MARKET AND PRODUCT OBJECTIVES Deli Yoghurt is a new yoghurt brand that is just picking up and building up its brand name. The organization intends to build its corporate reputation through aggressive marketing in its environs and beyond. They intend to use the customer base they build to tap into other avenues for maximizing their revenues. Deli Yoghurt is taking a critical look at the two major sections as the focal points of developing and building their customer base, they are The CURRENT MARKET they presently operate in, and the NEW MARKET they intend to operate in. CURRENT MARKET: Current markets will be built and increased by expanding the brand and flavor distribution at the retail level.
Further research into this claim would clear this suggestion. As for future research, the scale developed here can be used to measure consumer-based brand equity in other service sectors, introducing the necessary adaptations, in line with their balance of service characteristics such as their mix of
Environment Analysis PESTLE Analysis is valuable while analysing external environment where a business is conducted or where an organization is planning to start a business (Henry, 2008). The selection studies the environment factors that have an impact operation of CBL. Continuously evaluating the PESTLE factors identify the trends which will benefit or have impact to the organization will gain more opportunities to react fast and compete in the market (Team FMS, 2013). Political With the ending of the war in north and east territories, new market opportunities are arising in the north and east. So there can be optimistic about future possible growth due to this expansion of market opportunities.