Developing Strategies for Growth and Downsizing
Beyond evaluating current businesses, designing the business portfolio involves finding businesses and products the company should consider in the future.
Companies need growth if they are to compete more effectively, satisfy their stakeholders, and attract top talent.
At the same time, a firm must be careful not to make growth itself an objective.
The company’s objective must be “profitable growth”.
Marketing must identify, evaluate, and select market opportunities and lay down strategies for capturing them.
One useful device for identifying growth opportunities is the product/market expansion grid, shown in Figure 2.3.
Product/market expansion grid is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
Developing Strategies for Growth and DownsizingBeyond evaluating current businesses, designing the business portfolio involves finding businesses and products the company should consider in the future.Companies need growth if they are to compete more effectively, satisfy their stakeholders, and attract top talent.At the same time, a firm must be careful not to make growth itself an objective.The company’s objective must be “profitable growth”.Marketing must identify, evaluate, and select market opportunities and lay down strategies for capturing them.One useful device for identifying growth opportunities is the product/market expansion grid, shown in Figure 2.3.Product/market expansion grid is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
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