Professional Documents
Culture Documents
Chapter 4
Chapter 4
Chapter 4
Chapter 4
Strategies in Action
Introduction
Concentric Expansion
Also called intensive strategy
The first route of growth is to expand the present line
This involves:
Developing new product features
Modifying (change color, form, shape, etc.)
Magnify & minify
Rearrange (layout, patterns, etc.)
Developing additional models & sizes (product
proliferation)
Financial
synergy between the acquired
and acquiring firms
Defensive Strategies
Retrenchment
Divestiture
Liquidation
What is Retrenchment ?
Contd…
sensitive buyers,
when there are few ways to achieve product
differentiation,
When buyers do not care much about
differences from brand to brand, or
when there are a large number of buyers with