Professional Documents
Culture Documents
Dr Ajit Prasad,
pathways to growth
market
penetration
new product
product
development
new market
market
development
diversification
Questions, Corporate Vs Business Strategy; Red Vs Blue Ocean; two conflicting strategies
4
spill more !
Increasing per
capita
consumption
Penetration :
Another Ansoffs
Diversification
Adds to the
total number of
customers
Market
Development
Giving existing
customers more
choice
Product
Development
Contradicts
penetration
As it reduces per
capita consumption
8
New markets
Existing
products
Penetration
Market
development
Economies
of scale
New Products
Product
development
Diversificatio
n
Economies
of scope
The sequencing of
Ansoff
For TVs
Mkt Development
Product
Development
Penetration
Diversification
Product
development
Mkt development
Diversification
Penetration
ROCE ->
12
On Strategic Assets
Assets
Strategic Assets
For Mr Amitabh
Bachhan
Core Competence
Spreads risk
Managerial
experience
Corporate
advantage
Necessary for long
term survival
Allows company to
experiment [OS,
wages etc)
Resources get
spread thinly
Emotional blind
spots
Industry boundary
begins to change
Dilution of CC
Conflicting OS
May attract anti trust
legislation
14
What is Corporate
Advantage?
Then
SYNCHRONOUS VS
ASYNCHRONOUS
DIVERSIFICATION
ASYNCHRONOUS
DIVERSIFICATION
(Steel & Pepsi)
SYNCHRONOUS
DIVERSIFICATION
(Steel & Cement)
16
Globalization of competitors
Porter (1994),
The managerial obsession with growth
is hazardous to strategy