intensification strategy is a type of internal growth

There are three important intensive growth strategies, viz. For example- a tyre company may grow by acquiring another tyre company. It includes three sub-categories : Market Penetration: It involves gaining extra share of a company's current market using existing products. It is a diversification engaged at different stages of production cycle within the same industry. Increasing its efforts to attract its competitors customers. Get the latest content direct to your inbox. The Indian cement industry has witnessed considerable horizontal integration. This tool, crossing products and markets of a company, facilitates decision making. By doing so, it bypasses the incumbent management and board of directors of the target firm. One key is that it should be value-packed, enticing, and unique from others in your space. Traditional means of operating with little cultural diversity and without global competition are no longer effective firms. Entering into a Joint venture is a part of strategic business policy to diversity and enter into new markets, acquire finance, technology, patent and brand names. Price concessions, better customer service, increasing publicity and other techniques can be useful in this effort. These strategies are adopted when firms remarkably broaden the scope of their customer groups, customer functions and alternative technologies either singly or in combination with each other. They choose what they want to do, and then they focus on conquering it better than anyone else. Internal: An internal growth strategy is one that . Intensive expansion of a firm can be accomplished in three ways, namely, market penetration, market development and product development first suggested in Ansoffs model. Let us say the industry has entered an advanced stage. Of course, many companies and organizations have successfully established themselves as global leaders in their respective markets. Shareholder Wealth Maximization Vs. Stakeholder Interest, Intuition and Analysis in Strategic Decision Making, Strategic Marketing Tools - Ansoff Matrix and BCG Matrix, Resource Based View (RBV) and Sustainable Competitive Advantage, The Rational and Dynamic Approaches to Strategic Management, Role of Social Responsibility in Managing Stakeholder Relationships, Relationship between Strategic Management and Leadership, Five Approaches to Differentiation Strategy, expanding in the current product-market space, business environment should be carefully examined, Dornbusch Exchange Rate Overshooting Model, Exploring the Concept of Sustainable Strategic Fit, Utilization of Artificial Intelligence (AI) in the Banking, Role of Digitalization in Business Growth, Impact of Digitalization on Business Models, Understanding Decreasing Term Life Insurance: A Guide to Protecting Your Loved Ones, Case Study: The Meteoric Rise and Fall of Ubers Founder Travis Kalanick.

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