Strategic Management: Formulation and Implementation


Concentrated growth strategies are strategies that center on improving current products and/or markets without changing any other factors. The firm directs its resources to the profitable growth of a single product, in a single market, and with a single technology.

A strategy of concentration allows for a considerable range of action: the business can attempt to capture a large market share by increasing present customer's rate of usage, by attracting competitors' customers, or by interesting nonusers in the products or services.

There are basically three approaches to pursuing a concentration strategy: market development, product development, and horizontal integration.

Market Development

Market development involves introducing present products or services into new geographic areas. Several specific approaches are listed in Figure 8-1.