Conquering New Markets: Corporate Growth Strategies

In this chapter, we analyze the paths for corporate growth. We emphasize the need to assess the aggregate economic impact of each business unit, distinguishing between industry momentum and market share growth. We advocate investment in businesses operating in industries with high growth potential and selectively investing those in mature industries with a strong competitive position. We also cover growth alternatives, including reinforcing existing businesses, incorporating new businesses with innovative products or in different geographic markets, or a combination of both approaches. We distinguish between the pursuit of these opportunities through in-house development, alliances, or acquisitions. We stress the need to analyze these alternatives under various scenarios and establish growth strategies that combine full commitments with multiple real options.