GROWTH STRATEGIES
Burke Lodge
Joe Baesuvan
Marty Onstot
Christina Kinney
3 Groups
The end
Visual Introduction
Growth Strategies
Case Analysis
Jeopardy
Q&A
Our
Product
Scaling
Our
Product
Our
Product
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 Growing
select business cells
 Often known as conglomerates
◦ Example company – GE, Johnson
& Johnson, SAP
◦ Balance the old and new
 Balance the informal and formal
◦ Evaluate and Monitor
◦ Learn from customers, partners
and competitors
Granulation works best when:
- Limits of scaling and duplicating
have been reached
- New technology
- Company is mature
 Doing
more of what you’re good
at
◦ Example company – Ford,
Microsoft, Nike
◦ Invest Aggressively
◦ Specialize and Standardize
◦ Hire the Right Mix
◦ Adapt the Structures
◦ Find ways to learn from
customers early
 Scaling
works best when:
◦ Market is large, potential for
rapid growth and focused
product line
◦ Unique value in customers view
◦ Distribution is low cost
 Repeat
the business model in new
regions
◦ Example company – IKEA
◦ Balance Standardization and
Adaptation
◦ Hire Flexible, Independent Managers
◦ Duplicate key parts of the
infrastructure
 Black boxing
◦ Duplicate Entrepreneurial Knowledge
 Devoted practice
◦ Be aware of the limitations
 Duplicating
works best when:
◦ Physical presence coupled with
repetitious business model
◦ Need for better distribution
◦ Can adapt experience easily
◦ Using a combination of any of
the three strategies
simultaneously
◦ Example company – SAP
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Begin with a birds eye view of the comparative
strengths of each of the three strategies
o Scaling = Simple
o Duplicating = More complex
o Granulation = Most demanding
Large companies with different business units in
different stages
o May use all three simultaneously
Most companies it is best to use all three
sequentially, with some overlap
- Managing
and sharing knowledge
is essential
oEx: SAP with training program
oEx: IKEA with their “knowledge
marines”
- Committed to continued growth
oIf not steadily growing, steadily
dying
Zipcar is growing rapidly
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Cannot keep up with demand in Boston
Staff is working overtime
There are still bugs in the system
Rumors of competitors in other cities
Google is interested in developing GPS technology
for a Google Maps application
We have a VC who is ready to invest $10m
People are taking public transportation in record #s
Attrition has been higher than expected
Complaints have surfaced re: customer service
Present an argument for your case. Prepare
questions for the other strategies and defend
your own case
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5
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What are the three strategies for managing
fast growth? Describe them.
Describe the differences between Scaling and
Duplicating.
Describe the conditions that must exist in the
market for each of the three growth
strategies to work.
Identify and describe the five components
that must be executed to successfully employ
a Scaling growth strategy.