Growth
Opportunities
Integrative Growth Opportunities
they are the areas of opportunity that can be provided by the same capabilities and the existing
marketing system in the facility.
The company has three strategies or choices in taking advantage of these opportunities, which
can be classified as follows:
Backward Integration
Forward Integration
Horizontal Integration
Backward
Integration
Here, the company works to own the sources of
supply or at least control them in order to achieve:
more efficiency in performance, more profits, clear
confidence in obtaining or in providing what it needs
in terms of supplies and production materials, more
ability to control the prices of these materials, more
ability to control the cost of purchasing and
production in the future ... etc.
Forward Integration
Here, the company works to own or open its own distribution
outlets and to carry out the activity and efforts of mediation
and intermediaries (wholesale or retail activity or both) or at
least control the distribution outlets if that will bring them a
lower cost - and then more profits - or more efficiency in
performance, distribution, customer service and facing
competition.
Horizontal Integration
This means that the company is working to
acquire and buy some competing companies or
units, or at least control them, with the aim of
limiting competition before them or those in the
size and style of this competition in a way that
does not contradict their interests in an effective
way.
Studying and seizing this type of field and
opportunity will appear acceptable and possible if:
-A strong growth and prosperity was expected for the
future of the immunity to which the facility belongs.
- The firm could have achieved more quantitative profits,
more efficiency or effectiveness and more control and
control over the market through this integration within
the industry or field in which it operates.
Diversification Growth Opportunities
These are the areas of growth available in the external environment of the company.
The company resorts to study these areas:
01
02
03
When it has exhausted the opportunities that its current
products or marketing system could offer her, or deemed these
opportunities unattractive.
When other external opportunities are more
attractive
When those opportunities and external areas
represent a preferential advantage that it
needs or to overcome clear problems that it
faces or will face
These areas are based on adding a new product, not merely
developing or designing the current product, as in the areas of
intense growth, and then it is based on diversification which means
adding a new product that may belong to the same current product
line of the company. according to the marketing concept of the
products line and may not belong to the same product line, but to
another new product line
Diversification Growth Opportunities
Horizontal
Diversification
Concentric
Diversification
Conglomerate
Diversification
Concentric Diversification
Here, the facility works on adding a new product that matches the
current product line, that is, it is consistent with the technology, methods
and experience of marketing the current products.
The facility that produced an electric washing machine used to produce
a dishwasher as well as an electric refrigerator ... etc. as these products
are combined from the marketing point of view what we can call a
single product line and where the experience, methods and methods of
marketing and distribution are one.
The production experience and problems may be the same or close to a
large extent, although this is not a condition in the opinion of some
It is natural that this new product will be introduced to new targeted
segments or to the same current segments as well
Horizontal Diversification
Here, the company is working to add new products
to its customers and its current segments that are
consistent with their needs, even if these products
are not related technically, marketing and
productively to the areas and experiences of the
company in the production and marketing of its
current products, that is, it belongs to a new line of
products, and if there is some relationship.
For example, a company that produces shoes for
men produces shoe varnishes, or jeans for a young
man, depending on the existence of a relationship
or on the experience it has, information about men
and youth, and methods of dealing with them.
Or a company that has a product line in the washing machine
range by adding production of different types of washing
machine instruments. This is a new product line and needs a
different marketing mix, even if there is some relationship.
Another example is for a company that has a line of kitchen
ware products and decides to add detergent products to many
tools, including household items, and so on.
Conglomerate Diversification
Here, the company adds new products
to new needs and groups of consumers,
and these products have nothing to do
with the expertise, technology and
methods of marketing the current
products, meaning that the difference is
a fundamental difference in terms of
technology, production and market.
Conglomerate Diversification
This strategy works on:
(A)Achieving economic balance for the project and corresponding to or folding
some aspects that the company is exposed to with its current products.
(B) Take advantage of the many and varied other fields in the external
environment, as there is no objection to the multiplicity and diversity of work
fields as long as there are financial and administrative capabilities, and there is
a desire for that on the part of the project owners.
In fact, this parent company becomes made up of a group of subsidiary
companies, thus increasing its magnitude and power when dealing and
negotiating with government, trade union, financial, banking, and labor agencies
and others, and it employs financial management expertise level, and its financial
capabilities enable it to bridge the automatic deficit of one of the subsidiaries in
a manner. Self or transfer from one unit to another, ... and so on,
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