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Growth . Alokesh Banerjee. Growth. Organic Growth Inorganic growth. Organic growth. Also known as Intensive growth is where company uses its own resources for growing on its own. Old. Product. New. Old. Market. New. ANSOFF’s MATRIX. Inorganic Growth.
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Growth Alokesh Banerjee
Growth • Organic Growth • Inorganic growth
Organic growth • Also known as Intensive growth is where company uses its own resources for growing on its own. Old Product New Old Market New ANSOFF’s MATRIX
Inorganic Growth Where the company decides to acquire businesses with opportunities of growth • Integrative Growth • Diversification Growth
Integrative growth Where businesses related to the existing business of the company are acquired • Vertical • Horizontal
Vertical Integration • Backward Integration- Company acquires a business which covers the rear part of the value chain. • Forward Integration- Company acquires a business at frontal part of the Value chain.
Horizontal Integration • Company acquires a business in the same segment of value chain(Industry and stage of production). • Gives control over Industry Policies, Prices and geographical location. - Economies of scale, scope and stocks.
Diversification Growth Here the company decides to move out of its current business purview • Concentric - Current customers with new Technical developments required. • Horizontal- Current technical strengths for new customer base. • Conglomerate- New technical requirements targeting new customer base.