Elements Strategic Alternatives:
Market Penetration– known skills and technology – just getting better
Market Development – known skills and technology – new products or segments
Product Development – known skills and technology – brand and continuous modification – R&D, production and SCM efficiency focus
Combination in limited growth often reality
Horizontal Integration, Related Diversification, Vertical Integration – SCM/Marketing Network – increasing power – focus on synergy
Unrelated Diversification – or Conglomerate – creating a portfolio – corporate strategy
Principle:
Summary of main strategic alternatives, grouped by growth
Issues:
DO NOTHING = copy competitors – NOTHING is downfall
SELL OFF also an option
Innovation needed to grow internally (limited effect) PLC dependent
- Winning, retaining and developing customers
Strategic means (alliance/JV or M&A) needed with higher risk of corporate strategy change (substantive effect)
Unrelated diversification in subsidiaries
Inventing a new way of doing business – new business model
Applications:
To determine effect compared to planning gap
Source Strategic Alternatives:
Thompson and Martin (2010)