Market penetration, market development, and product development constitute the major intensive growth opportunities open to a firm. The author describes a matrix framework designed to help identify the various distinct growth possibilities latent in each of the above opportunity classes and proposes an extended product-market growth matrix incorporating external opportunity factors such as user focus, use focus, market growth rate, and a wide range of internal strategy response options as subdimensions.
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References
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AnsoffIgor H., “Strategies for Diversification,”Harvard Business Review (September/October 1957), pp. 113–124.
2.
In an earlier issue of Harvard Business Review, Johnson and Jones used a similar framework to oultine eight different product-market growth strategies. However, the main focus of their article was on the need for introducing a steady stream of new products in order to be successful in the marketplace and the kind of organizational setup that would facilitate this process. See JohnsonSamuel C.JonesConrad, “How To Organize for New Products,”Harvard Business Review (May/June 1957), pp. 49–62.
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Pessemier, op. cit.; also Kollat, op. cit.; and Day, op. cit.
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Kotler, op. cit. See also CravensDavid W.HillsGerald E.WoodruffRobert B., Marketing Decision Making Concepts and Strategy (Homewood, IL: Richard D. Irwin, 1980).
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Cravens
19.
The case of technologically unrelated new products, that is, horizontal diversification growth strategies, is not considered here since, definitionally, these would fall outside the realm of intensive growth strategies.
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UrbanGlen L.HauserL. R., Design and Marketing of New Products (Englewood Cliffs, NJ: Prentice-Hall1980), pp. 80–88.
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Ibid.
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HamiltonRonald H., “Screening Business Development Opportunities,”Business Horizons (August 1974), pp. 20–21.
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Fortune, “J & J Comes a Long Way from Baby,” (1 June 1981), pp. 58–66.
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Ibid.
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Wall Street Journal, “Stop & Shop To Sell New Jersey Stores To A & P, Kings,” (5 August 1981), p. 7.
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Fortune, op. cit.
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WindYoramSaatyThomas L., “Marketing Applications of the Analytic Hierarchy Process,”Management Science (July 1980), pp. 641–658.
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Wall Street Journal, “Heilman Makes $494 Million Bid for Jos. Schlitz” (27 July 1981), p. 2.
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Wall Street Journal, “Baby Food It Is, But Gerber Wants Teenagers To Think of It as a Dessert” (17 July 1981), p. 29.
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KollatDay, “A Strategic Perspective.”
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AbellDerek F., Defining the Business: The Starting Point of Strategic Planning (Englewood Cliffs, NJ: Prentice-Hall, 1980), pp. 11–25.
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WindYoramMahajanVijay, “Designing Product and Business Portfolios,”Harvard Business Review Ganuary/February 1981), pp. 155–165.
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Abell, op. cit.
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Ibid.
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AnsoffIgor H., “The Changing Shape of the Strategic Problem,” in SchendelDan E.HoferCharles W. (eds.), Strategic Management (New York: Little, Brown and Company, 1979).
