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Growth Strategies

Modes of Growth. . . . . . ProductDevelopment. Diversification. MarketPenetration. MarketDevelopment. . . . Acquisitions. StrategicAlliances. Internal Development. Internal Growth Options. . . . Products. New. Existing. Markets. Existing. New. ProductDevelopment. . MarketPenetration. Diversif

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Growth Strategies

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    1. Growth Strategies Meeting 9

    2. Modes of Growth

    3. Internal Growth Options

    4. Market Penetration Process

    8. Market Development Strategy

    9. Product Development Strategy

    10. Diversification

    16. Risks Associated With Delays In Market With 20% Growth Rate 12% Price Erosion 5 Year Product Life A 6-month delay in product introduction can result in company income loss of 33% If development costs are 50% over budget but product is on time, loss is 3.5%

    17. Technology Adoption Life Cycle

    18. Lifecycle Defined By Buyers . . . Innovators = Technology enthusiasts Early Adopters = Visionaries Early Majority = Pragmatists Late Majority = Conservatives Laggards = Skeptics

    19. Early Market Customers Techies Want the truth Access to your techies First to get new ‘stuff’ Want everything cheap “free technology” The “Beachheads” Early references Debugging test-bed Visionaries they match emerging technology to strategic opportunities can translate technology to highly visible project charisma to sell into org. driven by business dream, not technological dream

    20. Early Market Problems Company has no experience in bringing products to market creating problems Not enough $, wrong people, etc. = ‘foul ups’ Company sells visionary before it has product Vaporware = failed company (must totally regroup) Visionaries pull back support & $ Marketing fails to identify the “compelling application that provides ‘order-of-magnitude’ leap in benefits

    21. The Chasm Visionaries Intuitive Support Revolution Contrarian Take Risks Motivated by Opportunities Seek The Possible Pragmatists Analytic Support Evolution Conformist Manage Risks Motivated by Problems Pursue The Probable

    22. How To Cross The Chasm Targeting The Point Of Attack

    23. Target Customer Characterization (An Alternative Form Of Scenarios) Focus on Customer - NOT on Market Make up potential customers Users / Technical Buyers / Economic Buyers Develop a library of 20-30 alternative customer profiles to be reduced to 8-10 distinct alternatives Develop the ‘date’ to support prioritizing market segment opportunities

    24. Sample Customer Scenario Buyer ID User: Technical Buyer Economic Buyer Day In the Life Before Scene / Situation Desired Outcome Attempted Approach Interfering Factors Economic Consequences

    25. Sample Customer Scenario (cont.) Day In The Life After New Approach Enabling Factors Economic Rewards

    26. Process (Score) The Scenarios Target Customer - an identifiable economic buyer willing to pay? Compelling Reason To Buy- problem important for economic buyer to fix Whole Product- can we(& partners) solve whole problem now (time issue) Competition - has problem been addressed already by a competitor Partners and Allies - do you have allies already lined up? Distribution - is there a sales channel in place, can we ‘talk the language’? Pricing - is target price consistent with budget, value of problem fixed? Positioning - is our company a credible provider? Next Target Customer - is this a good ‘bowling pin’ niche to start with?

    27. Selecting Application Niches . . . Is target customer well funded & accessible? Do they have compelling reason to buy? Can we today, with help of partners, deliver whole product? Is there entrenched competition? Want to have competitive avoidance! If we do win niche - is it leverageable to other market segments?

    28. Segment Validity Measurable? Size, Growth, Market Potential? Profitable? Accessible? Identify and Reach Actionable? Segment Specific Marketing & Sales

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