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Corporate Level Strategy
Corporate Level Strategy
STABIITY STRATEGIES
EXPANSION
RETRENCHMENT
COMBINATION
Stability Strategies
Conditions when stability strategy is adopted: Macro Economy Volatility (H) No / Less substitute (industry) (Ha) Maturity Stage of industry (S) Less competitive Threat (S) Consolidation after rapid growth phase (H
Stability Strategies
HOLDING Functional Strategy at previous level STABLE GROWTH One product/service line, market penetration, Harvesting Growth Reduce cost & no reduction in price Profit or End Game. Replacement of technology, No new investment, Use or Sell?
Expansion
EXPANSION THROUGH INTESIFICATION Same line of business Highest NPV one as the first option Igor Ansoff ( 1968) CM NM CP MP MD NP PD D
Expansion
MP Changing the infrequent users to frequent users & F.U to H.U.( volume discounts, bonus cards, price promotions, crm). Competitive advantage (Product design, quality, Distributor network)
Expansion
MD Existing Product , New market (segment/ geography). MD has risk > MP
Expansion
PD Existing Market , New/Improved/Modified Product (s). PD has risk > MP
Expansion
Diversification New line of Business Related (Concentric) Unrelated (Conglomerate)