Generic Strategy Alternatives

Expand
Business Definition Pace

Retrench
Business Definition Drop Old Products Pace

Stabilize
Business Definition Pace

Combination
Definition or pace Drop Old while adding new products

Products

Add new Products

Find new ones

Dec Maintain Product Dev

Make package Change, Quality Improve ments Protect market shares, Focus on market niches

Markets

Find new Territories

Penetrate Market

Drop distributio n Channel

Reduce Market share

Maintain

Drop old customers while finding new customers

Functions Forward,
Vertical integration

Increase Capacity

Become Captive Company

Dec Process R&D

Maintain

Improve Increase capacity Productio & improve n efficiency efficiency

Possible Strategy Variations

Expansion Internal External Related Unrelated Horizontal Vertical Active Passive
Penetrate Existing markets, add new product Acquisitions, mergers

Stability
Seek production & marketing efficiency, reorganize Maintain market shares

Retrenchment
Reduce costs, reduce assets, drop products, drop markets, drop functions Disinvest SBUs Liquidation, bankruptcies Eliminate related products, markets or functions Eliminate unrelated products, markets or functions Eliminate complementary products or markets Reduce functions

Combination
Sub- contracting

Cross licensing, joint ventures

Seek synergy from new products, markets or functions Conglomerate diversification in products, markets or functions Add Complementary products or markets Add new functions Innovative Entrepreneurial moves Imitator in R&D products

Improve products

Grow to sell out

Reactive defense of position