For a business to survive, growth is an imperative, not an

option. But only one in ten companies succeeds in achieving

sustained growth.

Organisations may select a growth strategy :
-to increase their profits
-to increase their market share or sales
-to reduce the production cost per unit .

These strategies are adopted to broaden the scope of their
customer groups,customer functions and alternative
technologies.


GROWTH STRATEGIES

Internal growth strategy is achieved through
increasing the firms production capacity,employees
& sale.

Benefits-
Firms prefer this stategy as it preserves their
efficiency,quality & image unlike in external growth
strategy.
1.Internal Growth
Strategy

The total efforts of the firm are concentrated on a
limited combination of customer groups,customer
functions,alternate technologies and products.

A firm can gain a competitive advantage by
concentrating on a specific technology,product or
market.Firms pursuing this strategy are frequently
able to identify new developments and trends within
the industry and respond to them.
2.Concentration
Strategies

Diversification occurs when the existing firm creates
another business unit in the same industry.
Firms enter new & unrelated portfolios of business.
Example- Tata Group established tata steel, tata
consultancy services, tata tele services, tata tea,etc.

3.Conglomerate
Diversification

1. Reduction of risk
2. Increase in profits
3. Attain managerial competence
4. Financial Stability
5. Achieve higher growth rate

Benefits of Conglomerate
Diversification

Vertical Integration is in which new products and/or
services complementary to the existing products
and/or service lines are added.
Vertical Integration can be-
i. Backward integration
ii. Forward integration
iii. Both backward & forward integration
4.Vertical Integration

Backward vertical integration occurs when the firms
acquire or create the company that supply the firm raw
materials and other inputs.
Example: Indian Railways established their own
production units like Rail Wheel Factory, Rail Coach
Factory,Diesel Locomotive Works.
Forward vertical integration occurs when the firms
acquire or create the company that purchases its
products and/or services.
Example : Indian Railways also established Catering &
Tourism Corporation.


Advantages