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Five strategies for rapid firm growth and how to implement them
Author(s) -
Mascarenhas Briance,
Kumaraswamy Arun,
Day Diana,
Baveja Alok
Publication year - 2002
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.1068
Subject(s) - disequilibrium , exploit , scope (computer science) , industrial organization , consolidation (business) , business , new product development , economies of scope , market share , economics , value (mathematics) , microeconomics , marketing , economies of scale , computer science , finance , medicine , computer security , ophthalmology , programming language , machine learning
Analysis of 45 rapidly growing, profitable firms reveals five strategies: (1) product proliferation, (2) mass market development, (3) increasing value to select customers, (4) distribution innovation, and (5) acquisition and consolidation. These five strategies are not restricted to high‐growth industries and arise when firms exploit market disequilibrium to the their advantage. The profitable growth strategies are based on multiple, reinforcing sources of scale, scope, and time‐based advantages. The study details the steps needed to implement each growth strategy and potential pitfalls to avoid. Copyright © 2002 John Wiley & Sons, Ltd.