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Planning New Businesses and

Downsizing Old Businesses

Strategies Involved:

Intensive growth

Integrative growth

Diversification growth

Forming Strategic Alliances

Harvesting or divesting old businesses



Growth Oriented Strategies:

S

A

L

E

S

TIME

INTENSIVEGROWTH

INTEGRATIVEGROWTH

DIVERSIFICATIONGROWTH



ProductProduct--Market Expansion GridMarket Expansion Grid

((Ansoff¶sAnsoff¶s Matrix)Matrix)

Strategic Planning for Intensive

Growth:

Existing ProductsExisting Products New ProductsNew Products

ExistingExisting

MarketsMarkets

NewNew

MarketsMarkets

Market Market

PenetrationPenetration(e.g. introduction of (e.g. introduction of

sachets)sachets)

Market Market

Development Development (e.g. Scorpio being (e.g. Scorpio being

exported to S. Africa,exported to S. Africa,

US etc.)US etc.)

Product Product

Development Development

DiversificationDiversification

StrategiesStrategies



Integrative Growth

Backward integration- AcquiringSuppliers Gas Authority of India Ltd (GAIL) has invested in 29

exploration blocks and three coal bed methane (CBM)

blocks (ET, 28th Oct. 2008)

Tamil Nadu Newsprint and Papers (TNPL),

manufacturers of printing & writing paper and newsprint

has set up a captive plantation to meet its material

requirements. (ET, 28th

July 2008) Exide Industries has picked up a 51% stake in Leadage

Alloys India Ltd. (LAIL) to get raw material source of

recycled lead and lead alloys for making storage

batteries. (ET, 19th June 2008)



Integrative Growth (Cont«):

Forward Integration - Acquiring Buyers Jubilant Organosys, involved in manufacturing of active

pharma ingredients forayed into the healthcare segment

and currently operates a 92-bed hospital in West Bengal

(ET, 21 July 2008) National Mineral Development Corporation (NMDC),

from mining iron ore, is leapfrogging into steelmaking

by investing Rs 16,000 crore in a new plant in

Chhattisgarh that will have an annual capacity of four

million tonnes (ET, 18 March 2008)

XL Telecom, a solar panel manufacturer, is going to

establish a grid connected µsolar farms¶ in Spain and

Portugal with an investment of Rs 1,000 crore. (ET, 27

Dec 2007)



Integrative Growth (Cont«):

Horizontal Integration - AcquiringCompetitors

HP acquires Compaq

Jet acquires Air Sahara Kingfisher acquires Air Deccan

Tata steel acquires Corus

Mittal steel acquires Arcelor

Hindalco acquires Novelis

Videocon acquires Thomson¶s CPT plant

Videocon acquires Daewoo Electronics



Diversification Growth:

Concentric Diversification Strategy:Technological/marketing synergy with existing

product line that may appeal to different group of

customers. E.g. Tata Motors going in for Nano, IBS offering Executive

MBAs

Horizontal Diversification Strategy:

Technologically unrelated products that could appealto current customers.

E.g. Bajaj going in from manufacturing of scooters to

manufacturing of bikes, Microsoft key-board and mouse



Diversification Growth (Cont«):

Conglomerate Diversification Strategy:

No relation to company¶s current technology,

product or market.

Tata group manufactures cars as well as salt

Godrej group manufactures soaps as well as

furniture

ADAG is into telecommunications as well asfinancial services

Aditya Birla group is into manufacture of textiles as

well as cement



Strategic Alliances:

Product or Service Alliance Promotional Alliance

Logistics Alliances

Pricing Collaborations



Business Strategic Planning

Business Mission SWOT Analysis:

Internal

SWOT Analysis:

External

Goal Formulation

StrategyFormulation

ProgramFormulation

Implementation Feedback and

Control

Planning Involves Eight Steps:



The Marketing Process Two Views of the Value Delivery Process:

Traditional physical process sequence

Make the product . . . Sell the product

Value creation and delivery sequence

Choose the value . . . Provide the value. . . Communicate the value



The Marketing Process Steps in the Marketing Process:

Analyzing market opportunities

Developing marketing strategies

Planning marketing programs

Managing the marketing effort



Executive summaryand TOC

Current situation

Opportunity and

issue analysis Objectives

Marketingstrategy

Action programs

Financial

projections Controls

Marketing Plan Contents

The Marketing Process



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