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what are the four different growth strategies and describe them
- 1. Penetration Strategies- encourage existing customers to buy more of firm's current products
- 2. Product Development Strategies- developing and selling new products to current customers
- 3. Market Development Strategies- selling the firm's existing products to new groups of customers
- 4. Diversification Strategies- selling new products to new markets
define horizontal integration
buying a competitor
what are some advantages of size?
More power for owner to influence performance
- - increased production efficiency
- - increased bargaining power with suppliers
- - increased legitimacy with customers, financiers, other stakeholders...
define opportunity overload
Rather than lacking enough sales or new market opportunities, many entrepreneurial firms face an abundance of opportunities.
define abundance of capital
Whereas most stable or established small or medium-sized firms often have difficulties obtaining equity and debt financing, most of the rapidly growing firms were not constrained by it.
define cash flow management
There firms all pointed to problems of cash burn rates racing ahead of collections. They found that unless effective integrated accounting, inventory, purchasing, shipping, and invoicing systems and controls are in place, this misalignment can lead to chaos and collapse.
define decision making
short term planning instead of long term strategy. Many of the representatives of these firms argued that under conditions of rapid growth, strategy was only about 10 percent of the story.
define facilities/space limitations
expansion of space or facilities is a problem and one of the most disrupting events during the early explosive growth of a company