LEARNING

ACTIVITY SHEET

NAME: Aiza S. Cupiado COURSE: Strategic Management

DATE: December
LAS NO.: SECTION: BSHM/BSTM 3
11, 2020
PROFESSOR:
CONTACT NO. 09979441055
Ms. Marinel B. Supnet., MIHM
EMAIL ADD: cupiadocasslei@gmail.com RATING:

Final Requirement

Choose ONE Option from Corporate Level Strategies and explain. Elaborate by
giving/citing Companies (3 International and 3 Local)

A corporate level-strategy is a plan made by a company to see which organizations they

interact with over a given period. This is also an action taken to gain a competitive advantage
through the selection and management of a mix of business competing several industries or
product markets. Corporate level Strategy also refers to the top management’s approach or game
plan for administering and directing the entire concern. A corporate-level strategy specifies
actions a firm takes to gain a competitive advantage by selecting and managing a group of
different businesses competing in different product markets. Corporate-level strategies help
companies to select new strategic positions — positions that are expected to increase the firm’s
value. Firms use corporate-level strategies as a means to grow revenues and profits, but there can
be additional strategic intents to growth. Moreover, effective firms carefully evaluate their
growth options (including the different corporate-level strategies) before committing firm
resources to any of them. Furthermore, corporate-level strategy is concerned with two key issues:
in what product markets and businesses the firm should compete and how corporate headquarters
should manage those businesses. These are based on the company’s business environment and

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internal capabilities. There are 3 several classifications of corporate level strategies. This is the
stability, growth and retrenchment. Stability is a critical business goal which is required to
defend the existing interest and strength, to follow the business objectives, to continue with the
existing business, to keep the efficiency in operation, etc. Second is the Growth Strategy which is
also refer as expansion strategy, wherein the company’s business is re-evaluated so as to extend
the capacity and scope of business and considerably increasing the overall investment in the
business. In this strategy, the enterprise looks for considerable growth, either from the existing
business or product market or by entering new business, which may or may not be related to the
firm’s existing business. Basically, it compasses diversification, merger and acquisition, strategic
alliance, etc. Third and last is the Retrenchment which is pursued when the company opts for
decreasing its scope of activity or operations. In retrenchment strategy, a number of business
activities are retrenched so as to minimize cost, as a response to the firm’s financial crisis. The
business itself sometimes dropped by selling out or its liquidation. Therefore, areas where there a
problem is identified and reasons for those problems are diagnosed, after that corrective or
remedial step are taken to solve those problems.
But with this paper work, I will be going to explain further what the growth strategy is.

GROWTH

Growing a business is fundamental to its survival. But that growth doesn’t happen by
accident. A game plan for that action is necessary to increase and achieve your growth goals.
That where a growth strategy comes in. A growth strategy is one under which management plans
to advance further and achieve growth of the enterprise, in field of manufacturing, financial
resources, etc. A growth strategy is a plan of action that allows you to achieve a higher level of
market share than you currently have. Contrary to popular belief, a growth strategy is not
necessarily focused on short-term earnings—growth strategies can be long-term, too. Another
thing is that there are 4 types of strategies that roll up into growth strategy. There are the
following:
Market penetration refers to the successful selling of a product or service in a specific
market. It is measured by the amount of sales volume of an existing good or service compared to
the total target market for that product or service. Its aim to increase sales of existing products or

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service on existing markets, and thus to increase market share. Market penetration focus on
current product and current market in order to increase market share. It requires strong execution
in pricing, promotion, and distribution in order to grow market share. Growing your market share
by bundling products, lowering prices, and advertising—basically everything you can do through
marketing after your product is created. This strategy is often confused with market development
strategy. Market penetration strategy is a growth strategy, in which a firm tries to seek a higher
volume of sales of present products by penetrating into existing markets through devices like the
following: 1 Aggressive advertisement and other sales promotion techniques.2 encouraging new
uses of the old product. 3 coming out with exchange offers.
Thus organizations generally use a market penetration strategy when deciding to market
existing products within the same market they have been using. In other words, businesses try to
grow using existing products in order to increase their market share (the percentage that a
company has of the total sales for a particular product or service).One way to successfully take
on a bigger share of the pie is to lower the prices. For instance, in a market where the
differentiation of products barely exists, a lower price may help a firm grow its share of the
market.
Market development means increasing sales of existing product or services on previously
unexplored markets. It is about entering new market with existing products. A new market can
refer different geography, a new segment of customers, such as adding an online store to
complement your brick-and-mortar location. Market expansion involves an analysis of the in
which a company’s existing offer can be sold on new markets, or how to grow the existing
market. This can be accomplished by different customer segments; industrial buyers for good
that was previously sold only to the households; New areas or region about of the country:
Foreign markets.
The good company example of this is Dollar Shave Club. When Dollar Shave Club
launched its razor business in 2012, Gillette had a commanding share of about 70% of the U.S.
market according to Entrepreneur magazine. The key to Dollar Shave Club’s success is that it
could offer a lower-priced alternative to the leader by selling direct to the consumer, which
represented a new market for razors at the time. First Dollar Shave Club identify the a new
market. Gillette sold its products to retail outlets. Dollar Shave Club used the internet to employ
a direct-to-consumer model that allowed it to sell razors for as little as a dollar. Then Offer an

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improved customer experience. Dollar Shave Club worked with manufacturers in Asia to
produce razors, eliminating any markup from a middle man. These cost savings could be passed
on to consumers who flocked to its low-cost offering.
There can be a number of reasons for an organization to consider a market expansion
strategy. Competition can be so strong and overwhelming that it makes it impossible to grow
within the current market. A business must find new markets for its products, otherwise, it
cannot increase its profits. New applications or features in a product can also aid in the business
growth strategy. A product’s growth strategy works well when technology starts to change and
evolve. Thus, it becomes imperative for organizations to leverage the emergence of ubiquitous
connectivity, the inexorable rise of Artificial Intelligence, and the rising importance of
managerial creativity. This refer to Product Development. Product development Strategy which
is the growing of the market share by developing new product to serve the market. These new
products should either solve for a new problem or add to the existing problem you product
solves. The objective of product development is to launch new products or service on existing
markets. It may be used to extend the offer proposed to current customers with the aim of
increasing their turnover. These product may be obtained by; Investment in research and
development of additional products; Acquisition of rights to produce someone else product;
Buying in the product and “branding “it; Joint development with ownership of another company
who need to access to the firm’s distribution channels or brands. The product development
involves creating new products for existing markets. This can be as simple as an ice creams
shops offering a new flavor, or as complex as introducing an entirely different product line, like
if the ice cream shop began selling sandwiches. Product development in the Ansoff matrix refers
to firms which have a good market share in an existing market and therefore might need to
introduce new products for expansion. Product development is needed when the company has a
good customer base and knows that the market for its existing product has reached saturation. In
this case, the market penetration strategy is no longer practical. A new product development
strategy that caters to the existing market is a better approach. Though product development can
place within the already existing market, diversification implies that you can sell new products to
new markets to increase your business growth. This route is riskier and relies heavily on market
and consumer research to ensure the product’s desirability, feasibility, and viability.

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 Last is the Diversification strategy growing your market share by entering entirely new
markets. Diversification means launching new product or services on previously unexplored
markets. Diversification is a corporate strategy to enter into a new products or product lines, new
services or new markets, involving substantially different skills, technology and knowledge.
Diversification is a technique that reduces risk by allocating investments across various financial
instruments, industries, and other categories. It aims to maximize returns by investing in different
areas that would each react differently to the same event. Diversification is the riskiest strategy.
It involves the marketing, by the company, completely unknown market. It is classified into
categories:
Horizontal diversification which involves the purchase or development of new products
by the company, with the aim of selling them existing customer groups. Horizontal integration is
the process of a company increasing production of goods or services at the same part of the
supply chain. A company may do this via internal expansion, acquisition or merger. The process
can lead to monopoly if a company captures the vast majority of the market for that product or
service. These new product are often technologically or commercially unrelated to current
products but that may appeal to current customers, for example that was making notebooks
earlier may also enter pen market with its new product.
Vertical Diversification is when the company enter the sector of its suppliers or of its
customers. It is an arrangement in which the supply chain of a company is owned by that
company. Usually each member of the supply chain produces a different product or service, and
the products combine to satisfy a common need. For example, if you have a company that does
reconstruction of houses and offices and you start selling paints and other construction materials
for use in this business.
Conglomerate Diversification is moving to new products or services that have no
technological or commercial relation with current products, equipment, distribution channels, but
which may appeal to new groups of customers. The major motive behind this kind of
diversification is the high return on investment in the new industry. It is often used by large
companies looking for ways to balance their cyclical portfolio with their non-cyclical portfolio.
The business growth strategy should be one that brings you the maximum growth with
the least amount of risk and effort. Aggressive growth strategy requires risk: Growing too fast

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brings financial problems and challenges to maintaining the same level of quality. Limited
growth might look like the smarter, low-risk option, but it has disadvantages, too.
Growth strategy is the organization formulating their plan to accomplish their objectives
and goals to grow in revenue and size of the business. However, according Bridge, O’Neill and
Cromie 2003 she defines growth strategy as a “…the movement of the business into bigger
premises, taking on more staff, significant increases of turnover, taking on a new product line or
lines, buying another business, and so on” Growth Strategies are important for businesses as they
allow the business to move in a formal direction. Businesses can easily be affected by the
smallest of changes for example new customers or the arrival of new competitors which could
have a negative impact, so planning is very important and takes care of additional effort and
resource for faster growth. There are 2 ways that a firm grows, which are organic and inorganic
growth. Organic growth is internal growth which means to expand your business and increase
your turnover without acquisitions or moving to new markets. This type of growth is more
planned, slower and more natural hence the term “organic”. It involves very little change to the
organizations structure and can be easily managed. Advantages of organic growth is that it is
much safer than rapid growth or growth using external resources through acquisitions and
mergers. Not as much capital is needed so there is less risk on your finances.
The business growth strategy should be one that brings the maximum growth with the
least amount of risk and effort. Aggressive growth strategy requires risk: Growing too fast brings
financial problems and challenges to maintaining the same level of quality. Limited growth
might look like the smarter, low-risk option, but it has disadvantages, too. First disadvantage is
in Market Share. A big drawback to limited growth is that aggressive competitors might leave
you in the dust. If you grow 20 percent a year and the competition grows 50 percent, you double
your size in five years, but your rival is 2.5 times bigger. That gives it more money to buy
advertising and hire salespeople, making it easier to stay ahead of you. Eventually, if the
competition comes to dominate the market, that will draw more customers and your limited
growth might become negative growth. Second is Costs. A plus side to a limited growth strategy
is that it’s not as expensive as rapid growth. To make your business grow requires spending
money to hire more staff and possibly to open more stores and buy more inventory. All of that
reduces your profit margin. It also might require that you take on more debt or recruit investors.
Debt places added financial demands on your business; letting someone else buy into the

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company means giving up some degree of control. Then the Complexity. Managing your
business becomes more complex the bigger it grows. If it keeps growing, you must eventually
give up some of your direct control and delegate tasks to your staff. If you grow too fast, you
might not have the time or opportunity to hire competent staff, train new employees properly or
set up management systems to ensure your products stay top quality. If you don’t have the
resources for good management of rapid growth, settle for slower growth until you can put the
resources in place. After that is Considerations. It’s possible that what think is healthy growth is
anything but if it is in a healthy industry and the growth rate is less than the industry’s growth
rate, that’s a sign of losing ground. If the cost of sales has increased as its expand, but sales
revenue is growing much slower, that’s a warning of growing too fast. The United Kingdom’s
Business Link website recommends you analyze your strengths and opportunities closely to find
out if there are good growth possibilities you’re missing, or if your company’s moving at the
right speed.
A growth strategy involves more than simply envisioning long-term success. If you don’t
have a tangible plan, you’re actually losing business – or you’re increasing the chance of losing
business to competitors. The key with any growth strategy is to be deliberate. Here are some
ways to take:
First is establish a value proposition. For your business to sustain long-term growth, you
must understand what sets it apart from the competition. Identify why customers come to you for
a product or service. Second is Identify your ideal customer. You got into business to solve a
problem for a certain audience. Who is that audience? Is that audience your ideal customer? If
not, who are you serving? Nail down your ideal customer, and revert back to this audience as
you adjust business to stimulate growth. Third is Define your key indicators. Changes must be
measurable. If you’re unable to measure a change, you have no way of knowing whether it’s
effective. Identify which key indicators affect the growth of your business, then dedicate time
and money to those areas. Also, A/B test properly – making changes over time and comparing
historical and current results isn’t valid. Fourth is Verify your revenue streams. What are your
current revenue streams? What revenue streams could you add to make your business more
profitable? Once you identify the potential for new revenue streams, ask yourself if they’re
sustainable in the long run. Some great ideas or cool products don’t necessarily have revenue
streams attached. Be careful to isolate and understand the difference. Fifth is Look to your

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competition. No matter your industry, your competition is likely excelling at something that your
company is struggling with. Look toward similar businesses that are growing in new, unique
ways to inform your growth strategy. Six is Focus on your strengths. Sometimes, focusing on
your strengths – rather than trying to improve your weaknesses – can help you establish growth
strategies. Reorient the playing field to suit your strengths, and build upon them to grow your
business. Last is Invest in talent. Your employees have direct contact with your customers, so
you need to hire people who are motivated and inspired by your company’s value proposition.
Be cheap with office furniture, marketing budgets and holiday parties. Hire few employees, but
pay them a ton. The best ones will usually stick around if you need to cut back their
compensation during a slow period.

To elaborate more the growth strategy, here are some real world examples:

For first example is Under Armour. Under amour is the best known for its innovative
brands image. The brand has continued to innovate and bring new product since its inception.
This is also the main source of its competitive advantage. Today’s business environment is
highly competitive where Under Armour is faced with tough competitors like Adidas and Nike.
The market environment is highly challenging and to survive the challenge is difficult unless
Under Armour has a distinct source of competitive advantage. Michael E porter has highlighted
three key strategies that a brand can use to build a source of sustainable competitive advantage.
They are cost leadership, differentiation and focus. . The brand has used them formula of
innovation to make its products superior to that of the competitors. Its foundation was laid with
an idea of innovation. Under Armour’s main focus is to being apparel and footwear at better
caters to the needs of the athletes and which can be sued to boost performance in sports.
Innovation is at the root of everything at Under Armour and it invests a lot in design and product
innovation whose results are footwear and apparel designed to boost performance. A company
that demonstrated a successful market penetration. The company sells performance apparel, and
in recent years it has surpassed Adidas to become the number –two athletic-wear provider in the
U.S. The company has persistently focused on selling, and was able to capture a leadership
position in the market with that strategy. Throughout 2014, Under Armour fueled its growth by
focusing largely on promotion, distribution, and consistent product. As a result the company

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could claim major success- especially relative to major competitors Nike and Adidas- in the fight
for its share of the fitness apparel market. Like Nike, Under Armour’s has been very effective at
developing inspiring advertisement that feature well-known male and female athletes.
Under Armour Market penetration, It’s brand grew and it kept adding more products to
its product line, the brand grew its sales by selling more to its existing customer base. It mainly
targets the athletes or people involved and interested in sports. While Market development that
means selling to new customers or expanding to new markets in new regions or areas. This is
also a key strategy that the brand has utilized to grow its market share and customer base. Over
time it has expanded its market to several nations outside US. The Asian markets and particularly
the Chinese market has grown highly important for Under Armour. In the past few years, it has
aggressively focused on expanding its international presence. The international sales are now a
significant part of its overall revenue. In the Asian nations, it sales have increased fast. In this
way, UA has used market development strategy to enter new markets and increase its sales and
revenue globally. And in Product development which is another major strategy that US has
continued to use to grow its customer base and market share. While innovation is its main focus
it has continued to roll out innovative products one by one. Staring from the first Compression T-
shirt to the Speed form Slingshot, UA has made several innovative products that are designed to
help the athletes perform at their peak. In this way, UA has successfully used the product
development strategy to grow its popularity, customer base and market share.
Another example of is Coca-Cola Company. The Coca-Cola Company is the
manufacturer of a variety of non-alcoholic beverages. The flagship product of the company is
Coca-Cola and was the first product the company launched. It was invented in 1886 by a
pharmacist John Stith Pemberton. The Coca-Cola Company was launched in 1892 in Atlanta,
Georgia (WII, 2019). The current headquarters are also in Atlanta, Georgia. Soon after, the
company spread rapidly across the United States with the help of its flagship product through
marketing and promotions. Over the years, the company also acquired various other brands to
increase its market share. The company also expanded into various international markets and
launched various other products under the brand name. In 2018, the company earned revenue of
$31.85 billion and had more than 62,600 employees (US SECP, 2019). The company produces
syrup concentrate which is then sold to various companies holding bottling rights of Coca-Cola
products. Promoting existing products in existing markets is termed as market penetration. One

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of the strategies of Coca-Cola is to penetrate markets which is associating the drinks with
various cultural and other events. One example is of associating Coca-Cola with Christmas as
both have red color in common. The same goes for associating Coca-Cola with Eid. The
company also reduces competition by acquiring competitors. It also offers different bottle sizes
and tin cans to suit the needs of different consumers. Coca-Cola also offers different discounts
and bundled pricing during various events to boost sales. The company also gets involved with
various sporting and community events to advertise its products and promote brand image. Coca-
Cola also offers free samples during marketing events to help customers get acquainted with its
products (Oakley, 2015). Also, the company aggressively advertises its products using various
promotional mediums. All of these measures help increase the exposure of Coca-Cola products
in its existing markets. While its Market Development that refer to process by which the firm
seeks new markets for its current products’ (BPP Learning Media, 2010). Coca-Cola started its
journey in USA. It now operates in almost every country in the world. This is an example of
geographical market development. Coca-Cola had a successful launch of Vanilla Coke in USA.
The company then decided to launch it in the UK. And the Product Development that refers to
the ‘launch of new products to existing markets’ (BPP Learning Media, 2010, p.162). A good
example of product development is the launch of Cherry Coke in 1985. It is considered to be
Coca-Cola’s first extension beyond its original recipe. Another example is the development of
Fanta Icy Lemon. Coca-Cola developed this new product to sell to its existing markets to
increase sales. And in Diversification that’s occurs when a company decides to make new
products for new markets’ (BPP Learning Media, 2010, p.162). Coca-Cola has used
diversification as one of its strategies on a number of occasions. For example, it has added Chi
Ltd, a Nigeria-based leading dairy and juice company, to its enormous portfolio. Likewise, Coca-
Cola spent $4.1 billion to acquire Glaceau, including its health drink brand Vitamin water in
2007. As markets in many parts of the world are heading less-sugary future, Coca-Cola is
focusing on the growing healthy drink sector.
Another one is Facebook. Facebook, Inc. is an American multinational company that
focuses on social media and technology. Its headquarters are in Menlo Park, California. It was
found in 2004 by Mark Zuckerberg while he was studying at Harvard along with a few other
friends. The social media website was initially launched on the campus only and slowly spread
into other colleges, outside of colleges, across the United States, and then into other nations.

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Facebook is one of the four large technology companies in the world. It is also one of the world’s
most valuable companies (Facebook, 2018). Over the years, the company has acquired various
other social media platforms such as WhatsApp, Instagram, and others. In 2018, the company
earned a revenue of $55.838 billion and had more than 43000 employees (Facebook, 2019)
Facebook is ubiquitous today, but when it launched in 2004, it was one of several social media
networks.
The company use market penetration growth strategy. It start focusing on narrow
targeting customer base, then expanded gradually. Here’s how Facebook did it. Start small.
Facebook began in the Harvard dorm room of Mark Zuckerberg. Consequently customer base
was Harvard students. Then expand gradually. Once Facebook gained traction at Harvard, it
gradually expanded to other colleges. This allowed the company to grow using the same success
model employed at Harvard. The last is Increase Growth when Ready: after Facebook spread to
colleges, it opened up to non-students. Its measured expansion allowed Facebook to focus on
adjusting the product to the needs of each new customer segment. As a result, it avoided the
growth challenges that led to MySpace’s decline. Facebook which aim at promoting current
products in current markets. Current markets hold great value for Facebook. The first strategy
that Facebook uses is strategic alliances with telecom companies across the globe to provide data
packages that motivate their users to increase their use of Facebook. The various functions and
services of Facebook are also shared through ads in front of current users while they are online.
Another strategy that Facebook uses is that it acquires various other social media platforms to
gain greater market share. As it acquires these fellow companies, its number of users also
increases along with profits. The company also works to improve the services it offers on its
social media platform to motivate current users to increase their use. It also offers various
discounts to business users that use Facebook ads services. The leadership of Facebook also
actively participates in social activities to improve company reputation. All of these market
penetration strategies work to increase the dominance of Facebook in the social media industry.
Facebook also use Market Development that is done through the introduction of existing
products in new markets. Facebook is already being used in almost every country in the world.
Therefore, geographic expansion into new markets is not an option for Facebook. Facebook
develops its markets by launching new products that target new market segments in its existing
markets. It works with governments to help more people gain access to the services of Facebook.

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It offers various apps, online features, and other functions that make it attractive for new
segments. It also offers different pricing policies for corporate users to motivate them to use
Facebook ads for their business marketing needs. These efforts help the company gain more
revenue.
When new products are launched in existing markets, it is called product development.
The research and development teams of Facebook are highly active and often launch new
products or functions that make Facebook even more attractive for users. For example, it
launched its app, its messenger services, the new layout of the Facebook website, and various
other products from time to time. The new products are designed to attract more users and
advertisers helping the company gain viewers and revenue (Greenspan, 2018). The various
products the company already offers are also improved regularly to enhance user experience. The
web and app development teams of Facebook make use of user data and create changes and new
products that are designed to meet consumer needs and desires. These are technological changes
to the website and its functions that play a vital role in the development of Facebook as a social
media platform. The innovations are often creative and interactive forcing users to appreciate
them. All of these activities lead to company growth and improvement in revenues.
The company has already diversified into various services. It acquired WhatsApp and
Instagram to dominate the calls, video, and image social media platforms. It acquired Oculus VR
to enter into the virtual reality technology industry. All of these diversification efforts
complement the social networking services the company offers. The company can also further
diversify horizontally by steeping into consumer electronics, software, and various other
industries. These hold great potential for the company to gain further success. It can also
diversify into unrelated industries such as shoes, apparel, textile, broadcasting, and so on. The
successful brand name and strong cash flows can help the company succeed.
Google is also a good example for growth strategy. Google’s intensive growth strategies
help support the company in keeping its position as one of the most valuable brands in the world.
For example, continuous improvement of products ensures that the business maintains its share
of the online market. Through its generic strategy, the company has become a major player
influencing the competitive landscape and development of the online advertising industry, as
well as other that depend on the Internet. The combination of Google’s intensive strategies and
its generic competitive strategy is effective in satisfying the firm’s needs for continued business

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growth and leadership in the global industry. Google is renowned for its namesake search
engine, but what fueled its growth into the company now called Alphabet is its outsized revenue.
Google started as a business-to-consumer (B2C) company offering a search engine. But it needed
a source of revenue. To achieve that revenue, it developed a new product, AdWords, targeted to
businesses that had to pay to advertise. Tailor the product for the customer: Going from a B2C to
a business-to-business (B2B) product required a new set of capabilities designed for its B2B
audience. The new product should complement existing products. Google made sure its new Ad
Words product fit seamlessly into the experience of its B2C product. It had to safeguard the
speed of its search engine, so it offered text ads, which loaded quickly, and looked like the other
search engine results. This guaranteed the consumer experience was not degraded by advertising,
ensuring that consumers would continue using the search engine.
Google use Market Penetration as primary strategy. . Google primarily relies on market
penetration as its intensive growth strategy, especially outside the United States. The strategic
objective is to acquire more customers from the firm’s current markets. In the United States, the
company already has a leadership position. However, in other countries, such as China, Google
directly competes against other large search engines and online advertising firms. Thus, in the
market penetration intensive strategy for growth, the company continues to strive for a bigger
share of the global online advertising market. This intensive strategy determines how Google
uses its marketing mix or 4P to grow the business. Also, the generic strategy of differentiation
ensures competitive products that enable competitiveness in penetrating markets and increase the
company’s market share, especially in the market for online platforms used for digital
advertising.
While secondary is the Product Development. The product development intensive
strategy for growth is applied as a secondary strategic approach through Google’s innovation.
The strategic objective is to develop products to increase revenues. Innovation is at the core of
the company, considering its technological nature. Google LLC’s organizational culture
promotes innovation among employees. This intensive growth strategy involves new products or
product lines, such when the company introduces new mobile apps. Also, the business uses this
intensive strategy to grow revenues when introducing new products like Pixel smartphones,
tablets and laptops. In addition, external factors such as those identified in the PESTEL/PESTLE
analysis of Google LLC help guide product development in this case. The company continues to

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develop new products, such as cloud services, mobile applications, and new Pixel devices.
Through the intensive growth strategy of product development, Google creates more channels
for income generation. The differentiation generic competitive strategy is integrated into product
design and development processes to support the company’s competitive advantage.
And Market Development as supporting. Google LLC also uses the market development
intensive strategy for growth. In market development, the company’s objective is to attract
customers in new market segments through new uses of current products. In this case of Google,
for example, this intensive growth strategy is applied by offering new uses of current online
services, such as in offering cloud services as new tools for application programmers, in addition
to current uses of the services. Thus, using the market development intensive strategy for growth,
Google aims to offer its products to more areas worldwide. The differentiation generic
competitive strategy provides the product competitiveness needed to support the effective
implementation of market development. The Diversification is also supporting of google.
The diversification is used as a supporting intensive growth strategy in Google’s
business. The objective in this intensive strategy is to achieve growth through new businesses,
especially in other markets or industries where the company has insignificant or absent
operations. In this case, an example is Google’s 2006 acquisition of YouTube to establish
significant presence in the video hosting service market, and expand the company’s online
advertising presence. Any more to diversify the business affects Google’s organizational
structure. For instance, newly acquisitions require changes in the company’s corporate structure
to ensure seamless integration. The diversification intensive strategy is supported through the
company’s differentiation generic strategy, which ensures competitive advantage in establishing
or entering new businesses.
Another good example is Amazon. Amazon’s retail dominance began in 1995. Back then,
consumers were not used to buying online. Despite that, Amazon grew to billions of dollars in
annual sales. Amazon was among the earliest online retailers, offering the ability to buy online (a
new concept at the time) in a new market: the internet. Here’s the growth strategy approach
Amazon took. Offer an improved customer experience. It started by providing customers a larger
selection of books than was available in brick-and-mortar bookstores. Being online, Amazon did
not have the limits of shelf space. Also, customers could check the site and know right away if a
book was in stock. This convenience allowed Amazon to succeed over larger brick-and-mortar

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booksellers. And Rinse and repeat. Amazon then used its proven model in books to expand into
adjacent markets, such as DVD and electronics sales. It continued to grow its offerings, and now
it has spread into groceries and even healthcare.
Its Market penetration which refers to selling existing products to existing markets.
Amazon uses market penetration strategy aggressively. Sophisticated user experience features in
general and recommendations feature on e-retailer’s website in particular play an important role
in the application of market penetration strategy. Specifically, the e-commerce giant focuses on
user experience personalization thanks to efficient application of data science and machine
learning with positive implications on the volume of sales of existing products to existing
markets.
Then the Product development. This involves developing new products to sell to existing
markets. Product development is one of the core strategies used by Amazon. Started by Jeff
Bezos selling only physical books online in 1997, today Amazon sells anything that can be sold
online. The largest internet retailer in the world by revenue sells more than 500 million products,
including products sold by third parties on Amazon platform. Top product categories include
clothing, shoes, jewelry, home and kitchen appliances, books, electronic devices, sports and
outdoor items and others. After is Market development.
Market development strategy is associated with finding new markets for existing
products. Amazon is engaged in market development in a systematic manner. Started only in the
US, Amazon currently has country-specific sites in 13 countries, including Canada, the United
Kingdom, China and India. Moreover, Prime Free Same Day and Prime Free One Day services
are available in more than 8000 cities and towns. Prime Now service is available in more than
100 cities in 9 countries.
And Diversification involves developing new products to sell to new markets and this is
considered to be the riskiest strategy. Amazon uses diversification to a certain extent. As a result
of diversification strategy, Amazon currently operates in media, hardware, advertising and other
business segments.
Another one is Unilever. Unilever Philippines, Inc. is the Philippine subsidiary of British-
Dutch multinational company, Unilever. It is based in Bonifacio Global City, Taguig since 2016.
In September 1929, Unilever was formed by a merger of the operations of Dutch Margarine Unie

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and British soap maker Lever Brothers, with the name of the resulting company a portmanteau of
the name of both companies.
As the primary strategy Unilever used Market Penetration. Unilever applies market
penetration as its primary intensive growth strategy. In this intensive strategy, the company
increases its sales volume to improve revenues and corresponding business growth. For example,
in the home care market, Unilever aggressively sells its products in current markets, such as the
United States and Canada. Such aggressive efforts increase the company’s ability to capture
customers away from competing home care firms. Unilever successfully applies this intensive
strategy by using the generic strategy of differentiation to make its products more competitive
and attractive than others. A strategic objective linked to this intensive strategy is to grow the
business through aggressively marketing Unilever products in the global consumer goods
market. Product Development is the secondary strategy.
Product development functions as a secondary intensive strategy that Unilever uses for
business growth. The company applies this intensive growth strategy by introducing new
products that address consumers’ needs. For example, entirely new or new versions of Unilever’s
personal care products are released over time to maintain or increase the company’s market
share. This intensive growth strategy is in line with the company’s differentiation generic
strategy for competitive advantage in the consumer goods industry. For instance, differentiation
requires product uniqueness, which is applied in Unilever’s product development processes. This
intensive strategy leads to the strategic objective of growing the company through continuous
product innovation. Such innovation improves the product mix in Unilever’s marketing mix.
While Diversification is the supporting strategy. Unilever uses diversification as a
supporting intensive growth strategy. This intensive strategy focuses on establishing new
businesses to grow the company. For example, to achieve diversification, Unilever acquires other
businesses over time, such as the acquisition of the personal care business of Sara Lee
Corporation in 2009-2010. The generic competitive strategy of differentiation supports this
intensive growth strategy by ensuring that Unilever’s acquired brands offer unique features that
attract target consumers. A strategic objective connected to this intensive strategy is to achieve
growth by continuing the company’s trend of mergers and acquisitions. Such trend strengthens
Unilever’s reach in the global consumer goods industry. Also Market Development is supporting
strategy. Market development is used as a supporting intensive growth strategy in Unilever’s

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business. In this intensive strategy, the company grows by entering new markets or market
segments. For example, Unilever can grow by marketing its current products as a new solution to
unaddressed needs in certain market segments, such as infant care needs. However, the company
already has significant presence in practically every consumer goods market segment worldwide.
Thus, this intensive growth strategy takes only a supporting role in Unilever’s business. The
generic strategy of differentiation supports this intensive strategy by creating competitive
advantage, based on product uniqueness necessary to successfully enter new market segments. A
strategic objective based on market development is to grow Unilever by implementing marketing
campaigns that highlight other potential benefits of its current products.
Another good example is the Walt Disney Company. The company grows through
innovation and creativity, which enable the business to compete against large firms. Disney’s
intensive strategies are implemented with strategic objectives for maximizing the growth benefits
of such innovation. For example, the company grows by introducing technologically enhanced
products, such as movies for customers in the international market. In the context of Michael
Porter’s model, The Walt Disney Company’s generic competitive strategy and intensive growth
strategies are aligned for product-focused development.
Product development is The Walt Disney Company’s primary intensive growth strategy.
This strategy involves offering new products in the company’s current or existing markets. For
example, the company releases new movies with corresponding merchandise to generate more
profits from its target customers worldwide. This company analysis also sheds light on the
importance of Disney’s organizational structure, which provides the organizational design to
effectively manage product development. This intensive strategy links to the differentiation
generic competitive strategy in emphasizing uniqueness in product development. A related
strategic objective is to achieve business growth by effectively persuading customers to purchase
Disney’s products on the basis of their unique attributes, such as in entertainment experience.
The Walt Disney Company achieves growth partly through market penetration. As a
secondary intensive strategy, market penetration enables growth by increasing sales of existing
products in the company’s current markets. For example, one of the corporation’s strategic
objectives is to use aggressive advertising to increase its revenues from products released in the
global entertainment industry. The business strengths shown in the SWOT analysis of Disney
contribute to success in implementing this intensive growth strategy. A strong brand based on the

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differentiation generic strategy creates competitive advantage to attract customers to the
company’s products, and to manage customers’ expectations.
Market development is an intensive growth strategy that is less frequently used in The
Walt Disney Company’s business. In growing the business, this intensive strategy requires the
company to introduce its existing products to new markets or market segments. For example,
growth is achieved by establishing operations in new markets, such as through a new Disneyland
amusement park to capture a regional market. Even with competitive challenges, entry into new
markets can increase the company strengths to manage the industry’s competitive forces shown
in the Porter’s Five Forces analysis of Disney. A key strategic objective in market development
is to use the differentiation generic competitive strategy to successfully introduce the company’s
products into new markets.
The Walt Disney Company uses diversification as a supporting intensive strategy for
business growth. Developing or acquiring new businesses is the typical approach in this intensive
growth strategy. For example, through the establishment of the Disney Cruise Line, the company
grew by entering the cruise line market of the tourism and hospitality industries. The
differentiation generic strategy develops the competitive advantage of new business operations
that use the company’s brand. Under diversification, a strategic objective is to manage
competitive challenges by developing new businesses that grow the company’s presence and
brand popularity in the international market.
To succeed in today’s marketplace, businesses need to continue the discovery process,
harnessing new strategies and advancements in technology. They need to grasp the fundamental
principles that allow companies to make a leap and stay successful in the face of competition.
When it comes to organizational strategic management, not all experts agree that growth will
always yield positive outcomes. Hess (2012) points out, for instance, that growth can cause staff
members anxiety and stress. In the eyes of the employees, for example, growth can be perceived
as having to learn new processes, changing controls, and incorporating a new culture. In
addition, it can create risks, effect quality outputs and result in financial structural changes.
Furthermore, it can affect customers negatively and even destroy a company’s reputation.
When Coca-Cola engaged in a growth strategy that included changing their formula, for
example, the general consensus was why change something that already worked? As a result of
this tactic, rather than achieving the desired outcome they hoped for, consumers were not

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supportive of the new strategy and Coke went back to their original formula. In other words, if
growth strategies are not implemented and managed competently, growth can contaminate a
company’s value and in extreme cases, even bankrupt them (Hess, 2012).
In short, bigger is not always better because of the complexities involved. The bottom
line is that growth is change, plain and simple. If managed properly with efficient systems
devised to operate at maximum outputs, it will decrease the likelihood of errors that occur which
can in turn, result in the production of evolutionary outputs. This can transpire, as long as the
firm and its staff members acknowledge that running a successful business is a continual learning
process; one which requires discipline, efficient methodologies, and effective systems that are in
place to support the firm’s intentions and vision. In conclusion, the best growth strategies are
well-planned because they provide the clearest road maps that will lead a company to higher
performance outcomes more quickly because of the processes and systems that are set in action
to support them. Growth strategies usually starts by identifying and accessing opportunities and
marketing plans, which detail how yore going to meet specific business targets. Growth strategy
is important because it keep your company working towards goals that go beyond what
happening in the market today. They keep both leader and employees focused and aligned, and
they compel to think long term.

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