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MBA 706 - Chapter 17 - M. Darrat questions and answers verified answers||Latest 2024/2025
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MBA 706 - Chapter 17 - M. Darrat questions and answers verified answers||Latest 2024/2025
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MBA 706 - Chapter 17 - M. DarratAssessing Growth Opportunities - ANSplanning new businesses, downsizing, and terminating
older businesses (consider types of products and markets a company should focus on)
Product-Market Growth Framework - ANSevaluates the strategic growth opportunities for a firm
in terms of current and new products and markets (broken down into 4 key strategies)
Market Penetration Strategy - ANSGain more market share with current product in their current
market (same market, same product)
Current offerings to existing customers by demonstrating the benefits of its products
Market Devlopment Strategy - ANSFind or develop new markets for its current products (new
market, same product)
Identify user groups, go after office and factory markets, seek additional distribution channels,
and sell in new locations
Product Development Strategy - ANSDevelop new products for its current markets (same
market, new product)
New product features offer different sets of benefits at different prices, or new technology
Diversification Strategy - ANSOpportunity to develop new products for new markets (new
market, new product)
Good opportunities existing outside of present businesses
Growth through Mergers and Acquisitions - ANSA company can grow by organic growth or by
relying on mergers and acquisitions
Organic Growth - ANSincreasing output and enhancing revenues and profits internally
Horizontal Mergers - ANSAcquire one or more competitors
Backward Mergers - ANSAcquire one or more suppliers (gain control)
Forward Mergers - ANSAcquire some wholesalers or retailers (especially if highly profitable)
Company Portfolios - ANSThe more diversified a business portfolio, the great likelihood that at
some point it will need to downsize its business operations and/or divest itself of business units
, Growth through Innovation and Imitation - ANSLevitt argues that imitation might be as profitable
as innovation
Innovative Imitation (Levitt) - ANSInnovator bears the expense of developing the new product,
getting it into distribution, and informing and educating the market (usually leads to market
leadership). Another firm can come along and copy or improve on the new product.
Follower Strategies - ANSCloner, Imitator, Adapter
Cloner - ANSEmulates the leader's product, name, and packaging with slight variations
Imitator - ANSCopies some things from the leader but differentiates on packaging, advertising,
pricing, or location
Adapter - ANSTake the leader's products and adapts or improves them
Market Position - ANSDefined on 3 dimensions: share of market, share of mind, share of heart
Share of Market - ANSMeasured by sales revenue, the number of units sold relative to the total
revenue, or total units sold in a specific market
Share of Mind - ANSThe percentage of customers who regard the company as the first
company that comes to mind in a specific industry
Share of Heart - ANSPercentage of customers who name the company as the company from
which they would prefer to buy a specific product
Market share reflects - ANSthe share of mind and heart
Companies that make steady gains in mind share and heart share will inevitably make gains in
market share and profitability
Market Leader - ANShas the largest market share and usually leads in price changes,
new-product introductions, distribution coverage, and promotional intensity
Growing Sales to Current customers - ANSIncrease the amount, level, or frequency of
consumption
Approaches to identifying new occasions for usage - ANSprovide consumers with better info
about when they first used the product or need to replace it
Incorporate a gauge of the current level of product performance
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