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