Thursday, July 08, 2004

These are notes from an Excellent article I read at HBR, "Which Way Should You Grow" written by George S. Day

Standard approaches to growth:

Acquisition - CISCO , GE
Competing in low price - high volume market - DELL, WALLMART
Jump starting Innovation

Typically there are three classifications of organisation based on value proposition:
Performance Value Leader - MERCK, MEDTRONIC
Price Value Leader - WALLMART, DELL
Relational Value Leader - IBM Global Services

To craft a winning growth strategy a firm must identify
Companies Value Proposition
Including, capabilities, Assests & Cultural DNA

Price Value Leaders should ideally plan to grow by extending their low-cost value proposition to adjacent markets

Relational Value Leaders that create value by offering customers integrated solutions, they act as production partner in many cases. Their growth path is best to keep expanding their scope by broadening the definition of the solution. A pivotal question to ask is "Which of the functions that our customers perform could we do better?"

Performance Value Leaders grow best through continuous innovation, they do that by deploying a decentralized team oriented organisation.


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