Corporate Level Strategy.pptx - Corporate Level Strategy Growth Avenues for Businesses Ansoff\u2019s Growth Vector Matrix Ansoff\u2019s Growth Vector Matrix

Corporate Level Strategy.pptx - Corporate Level Strategy...

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Corporate Level Strategy
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Ansoff’s Growth Vector Matrix Growth Avenues for Businesses
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Ansoff’s Growth Vector Matrix Market penetration / Consolidation: Organisation takes increased share of its existing markets with its existing product range Greater market share - increased power vis-à-vis buyers and suppliers, greater economies of scale and experience curve benefits L N Mittal moved rapidly to become the largest steel producer in the world by acquiring struggling steel companies around the world Gaz de France and Suez, two utility companies with dominant positions in France and Belgium, decided to merge
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Ansoff’s Growth Vector Matrix Product development: Organisations deliver modified or new products (or services) to existing markets It implies greater degrees of innovation Sony’s move from Walkman portable music system from audio tapes, through CDs to MP3- based systems Banking and Insurance companies developing products to cater to the existing customer
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Ansoff’s Growth Vector Matrix Market development: Involves offering existing products to new markets New Segment: Traditional colleges might offer its educational services to working professionals / skill development of entrepreneurs New users: Aluminum whose original users in packaging and cutlery manufacture are now supplemented by users in aerospace and automobiles New geographies: Financial Inclusion scheme through Pradhan Mantri Jan Dhan Yojana
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Ansoff’s Growth Vector Matrix Diversification: Strategy that takes an organisation away from both its existing markets and its existing products The primary approach to corporate level strategy Diversified firms vary according to Level of diversification Degree of relatedness
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Corporate-level strategy : Specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets
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Corporate-Level Strategy: Key Questions Corporate-level Strategy’s Value The degree to which the businesses in the portfolio are worth more under the management of the company than they would be under other ownership What businesses should the firm be in?
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  • Fall '16
  • Rajesh Pillania
  • global business units, Agri Business, Household Care GBU

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