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Strategic Management News
Strategic
Management News
News Anchor : Brandice MillerNetscape Representative: Thao TranIKEA Representative: Jennifer MartinSAP Representative: Matt Lewis
SMN
Scaling works best when:
The market is potentially large enough for rapid growth in a focused product line
The product creates unique value in the customers’ view
The company can distribute products widely at low cost
Duplication works best when:
The business requires physical presence and the company can repeat its business model in new geographic markets.
There is a need for better distribution
The company can adapt its experience in product development, manufacturing, and marketing approaches fairly easily.
SMN
Granulation works best when:Growth through scaling and duplicating
has clear limits. A new technology is flourishing that could
become a substitute for the company’s products or a new business opportunity.
The company is sufficiently mature to monitor new business activites, share knowledge internally, and learn effectively about new markets and competitive scenarios
SMN
Potential Questions
1. What are the three strategies of growth?2. When would a company want to choose
granulation? Duplication? Scaling?3. What are the basic requirements to
undergo for scaling? Duplication? Granulation?
4. Give an example of a company choosing (scaling/duplication/granulation) as their growth strategy and explain/support why you think that is the strategy they are implementing
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