Limited growth includes: market penetration, either in a deliberate attempt to build market share oras a form of consolidation to protect a customer base.Market development: it means opening up new opportunities with different customers, possibly inoverseas marketProduct development:it means extending the range in order to expand the level of business withexisting customer.Substantive growth is includes horizontal integration, vertical integration, related diversification andunrelated diversification.Barclays can use various types’ strategy like stability where the firm canmaintain its status quo and sustainable growth. The firm can grow on various aspects. Barclays is oneof top companies in UK. So they may require various alternative strategies in various dimensions. TheStudent ID: 10153 Page 18of 31
HND In Business Business Strategygrowth may be internal growth. Organization may select growth strategy to reduce cost ofproduction per unit. Growth strategies involve a significant in performance objectives.Horizontal integration:it is generally merging with a direct or indirect competitor, again to increasemarket share.Vertical integration: it means linking with another company in the same supply chainRelated diversification:moving into an area where either marketing or technologies issues.Unrelated diversification: the higher risk strategy involving new markets, new products and newtechnologies.If Barclays want to adopt substantive growth then they can use the "AAA Triangle" which ispresented by Prof. Pankaj Ghemawat.According to Ghemawat, 2007 the three effective strategicresponses are: adaptation, aggregation and arbitrage.Source:Ghemawat.com (2011), AcademicResources- AAAAdaptationis the strategy used by companies when they seek to boost revenues and market shareby maximizing local relevance.Aggregationdescribes the attempt to deliver economies of scale by creating regional, or sometimesglobal, operations. Arbitrageis when companies exploit disparities between national or regional markets, often bylocating different parts of the supply chain in different places. Examples include call centers in India,factories in China, and retail shops in Western Europe.Student ID: 10153 Page 19of 31
HND In Business Business StrategyRetrenchmentAs a basic for turnaround of a company experiencing difficulties or linked to the divestment of non-core activities. Organic growth, it means internal investment to develop new competencies. Barclayas a large organization generally can use a mixture of stability, expansion or retrenchment strategieseither simultaneously, or sequentially. Example Barclays can achieve growth through acquisition ofnew business or divesting itself of unprofitable ventures. Depending on the situational demands,therefore, Barclays can employ various strategies to survive and remain profitable.
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