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localities is Sears. Looking at low price/quality and few localities is T.J. Maxx. Still at low price/quality but mid-level localities is Kohl’s. Many localities and low price/quality is Target , K-Mart and Walmart.
Growth StrategiesStrategyrequires organizations to grow. Without growth, firms cannot survive. Growth can be along several dimensions. As a model, we can look at growth in four stages.1.Single businessserves a local or regional market.2.Geographicexpansion.3.Vertical integration– backward or forward.4.Diversification– growth slows and the firm enters new industries – related or unrelated.Growth Strategies – Ansoff’s Modelexisting productsnew productsexistingmarketsMarket penetration strategiesIncrease market share with new customersIncrease sales volume for existing customersIncrease frequency of usageIncrease the amount of used productsIdentification of new applications and usage possibilities for existing productsProduct development strategiesProduct improvementExtension of product groupsDevelopment of new products for the same marketnew marketsMarket development strategiesDevelop new markets for existing productsIdentification of new geographiesIdentification of new market segments and new customer segmentsDiversification strategiesVertical diversificationHorizontal diversification / diversification towards a related business (concentric diversification)Diversification towards a new business (conglomerate diversification)
Ansoff’s model of growth strategies deals with new or existing markets and new or existing products.For example when we see existing markets and existing products this is known as market penetration strategies. This includes increase market share with new customers, increase sale volume for existing customers, increase frequency of usage, increase the amount of used products and identification of new applications and usage possibilities for existing products.New products with existing markets are known as product development strategies. These include product improvement, extension of product groups and development of new products for the same market.Existing products with new markets is known as market development strategies. This includes developing new markets for existing products, identification of new geographies and identification of new market segments and new customer segments.Finally, new products and new markets are diversification strategies. These include vertical diversification, horizontal diversification/diversification towards a related business (concentric diversification) and diversification towards a new business (conglomerate diversification)Growth Strategies – Ansoff’s ModelMarket penetration: Colgateincreased its toothpaste sales by merely increasing the size of the nozzle.