1. Corporate Strategies
These are the "grand strategies" that set the overall direction for the company.
- Stability: Maintain the status quo. Good for mature businesses.
- Growth/Expansion: Seeking significant growth through various means.
- Retrenchment: Reducing scope when facing trouble.
- Combination: Using a mix of the above strategies for different parts of the business.
2. Growth / Expansion
This is about getting bigger. It can be done in two main ways:
Intensification (Internal):
- Market Penetration: Sell more of your current product to your current market.
- Market Development: Sell your current product in a new market.
- Product Development: Sell a new product to your current market.
3. Diversification
This is a type of growth strategy involving new products and/or new markets.
- Concentric (Related): Diversifying into a related business. E.g., a clothing brand making shoes.
- Conglomerate (Unrelated): Diversifying into a completely unrelated business. E.g., a cement company making steel.
- Vertical Integration: Buying your suppliers (Backward) or your distributors (Forward).
4. External Growth
Growing by teaming up with or buying other companies.
- Mergers & Acquisitions: Combining with or buying another company to grow instantly. (e.g., Facebook buying Instagram).
- Strategic Alliance: A partnership where two or more firms work together to achieve a common goal, but remain separate entities.
5. Strategic Exits
Sometimes, the best move is to scale back or get out.
- Turnaround: A strategy to reverse a decline and improve performance. This is for when the business is in trouble but can be saved.
- Divestment: Selling off a part of the business (a division or SBU).
- Liquidation: Shutting down the business and selling off its assets. This is the last resort.
6. Ansoff's Matrix
A tool to help businesses decide their product and market growth strategy.
- Market Penetration: Existing Product, Existing Market.
- Market Development: Existing Product, New Market.
- Product Development: New Product, Existing Market.
- Diversification: New Product, New Market.
7. BCG Matrix
A portfolio analysis tool that classifies business units based on Market Growth Rate and Relative Market Share.
- Stars: High Growth, High Share. Need investment.
- Cash Cows: Low Growth, High Share. Generate cash.
- Question Marks: High Growth, Low Share. Risky.
- Dogs: Low Growth, Low Share. Consider divesting.
8. GE Matrix
A more complex portfolio model, also known as the "Stop-Light" matrix. It uses two factors:
- Market Attractiveness (Vertical Axis)
- Business Strength (Horizontal Axis)
It classifies business units into three zones: Green (Invest/Grow), Yellow (Hold/Caution), and Red (Harvest/Divest).