Growth Strategy for Business in Strategic Management

As you add more suppliers to the fold, your employees will be the ones managing and nurturing those relationships. If you’re unprepared for these fluctuations, it can put a great deal of strain on your supply chain. While you don’t want to incite any type of rivalry, knowing that you have other options can motivate each supplier to perform their best work, which increases quality levels on your end.

It is driving more leads to our website and spreading awareness around our brand. Social media is a great option for marketing your business and intensive strategy developing an intensive growth strategy for your business. Intensive growth is the growth strategy that is related to the products and markets.

Increased Workloads

To ensure it is the right strategy, a business must determine critical factors such as the availability of retail locations and the capacity of organizational resources. In contrast, an extensive distribution strategy focuses on market penetration. One aggressive intensive growth strategy that we have implemented at our organization is omnichannel marketing.

Yet, an event can still occur that causes these numbers to surge past your expectations. If this happens and you only have one or two suppliers to call upon, you could be forced to put inventory on back order until you can produce enough to meet the demand. The data analytics capabilities of modern ERP and SCM systems have made it easier than ever before to forecast and predict future sales numbers.

Three Levels of Strategy Corporate, Business, Functional

Fulfilling needs and demands of your consumers is the foremost duty and it can only be accomplished by providing something unique and different to them. The distribution strategy ensures that products are readily available and accessible to almost all customers. When distributing products high in demand or used daily, such as matchboxes and soaps, this strategy is key. Customers do not identify with any particular brand when shopping for these products. As such, they may opt for any variety if they do not find their preferred brand. Investors are not limited to public equities in their search for other unique sources of risk and return.

Also, the cost leadership generic strategy supports competitive advantage through expertise in production processes and materials management. Intensive distribution entails placing many products in many retail locations in many regions. Intensive distribution strategy is adopted when companies place their products in many retail outlets in many locations. The distribution method is applicable for daily products such as newspapers, soaps, cigarettes, and soft drinks.

Types of Intensive Strategies in Strategic Management

The intensive growth strategy focused on increasing sales in various ways to increase the company’s revenue. Horizontal diversification aims to spread business risk and increase revenues by offering complementary products or services to existing customers. For example, a company that produces soft drinks may diversify horizontally by providing snacks or other beverages. To diversify vertically, you need to analyze your value chain and decide which stages you want to integrate.

Brand recognition and customer loyalty for the detergent may carry over to the business of selling washing machines. Practically, intensive distribution is applied to mass-produced products and does not have a specific target market. Indeed, products such as soft drinks and newspapers are not limited to any particular market segment because virtually anyone can purchase them. Products supplied using this distribution method can be bought in supermarkets, kiosks, retail stores, wholesale centers, restaurants, small shops, and many other outlets. Intensive distribution allows companies to cover a wider geographical area and target customers with different business dynamics.