Definition: The Expansion through Diversification is followed when an organization aims at changing the business definition, i.e. either developing a new product or expanding into a new market, either individually or jointly. A firm adopts the expansion through diversification strategy, to prepare itself to overcome the economic downturns. Generally, the diversification is … [Read more...] about Expansion through Diversification
Expansion through Integration
Definition: The Expansion through Integration means combining one or more present operation of the business with no change in the customer groups. This combination can be done through a value chain. The value chain comprises of interlinked activities performed by an organization right from the procurement of raw materials to the marketing of finished goods. Thus, a firm may … [Read more...] about Expansion through Integration
Expansion through Concentration
Definition: The Expansion through Concentration is the first level form of Expansion Grand strategy that involves the investment of resources in the product line, catering to the needs of the identified market with the help of proven and tested technology. Simply, the strategy followed when an organization coincides its resources into one or more of its businesses in the … [Read more...] about Expansion through Concentration
Pause/Proceed with Caution Strategy
Definition: The Pause/Proceed with Caution Strategy is well understood by the name itself, is a stability strategy followed when an organization wait and look at the market conditions before launching the full-fledged grand strategy. Also, the firm that has intensely followed the expansion strategy would wait till the time the new strategies seeps down the organizational levels … [Read more...] about Pause/Proceed with Caution Strategy
Profit Strategy
Definition: The Profit Strategy is followed when an organization aims to maintain the profit by whatever means possible. Due to lower profitability, the firm may cut costs, reduce investments, raise prices, increase productivity or adopt any methods to overcome the temporary difficulties. The profit strategy can be followed when the problems are temporary or short-lived and … [Read more...] about Profit Strategy
No-Change Strategy
Definition: The No-Change Strategy, as the name itself suggests, is the stability strategy followed when an organization aims at maintaining the present business definition. Simply, the decision of not doing anything new and continuing with the existing business operations and the practices referred to as a no-change strategy. When the environment seems to be stable, i.e. no … [Read more...] about No-Change Strategy
Combination Strategy
Definition: The Combination Strategy means making the use of other grand strategies (stability, expansion or retrenchment) simultaneously. Simply, the combination of any grand strategy used by an organization in different businesses at the same time or in the same business at different times with an aim to improve its efficiency is called as a combination strategy. Such … [Read more...] about Combination Strategy
Retrenchment Strategy
Definition: The Retrenchment Strategy is adopted when an organization aims at reducing its one or more business operations with the view to cut expenses and reach to a more stable financial position. In other words, the strategy followed, when a firm decides to eliminate its activities through a considerable reduction in its business operations, in the perspective of … [Read more...] about Retrenchment Strategy
Expansion Strategy
Definition: The Expansion Strategy is adopted by an organization when it attempts to achieve a high growth as compared to its past achievements. In other words, when a firm aims to grow considerably by broadening the scope of one of its business operations in the perspective of customer groups, customer functions and technology alternatives, either individually or jointly, then … [Read more...] about Expansion Strategy
Stability Strategy
Definition: The Stability Strategy is adopted when the organization attempts to maintain its current position and focuses only on the incremental improvement by merely changing one or more of its business operations in the perspective of customer groups, customer functions and technology alternatives, either individually or collectively. Generally, the stability strategy is … [Read more...] about Stability Strategy