Learn how to how to develop capabilities which are essential to the expansion of your business.
- Whenever a company contemplates … expanding into a new line of business … it must address one major challenge. … How to build, acquire, or gain access … to those capabilities which are essential … to the new business, … but are different from those … which underlie the company's current activities. … Strategic alliances can be a possible solution … to this challenge. … Other possible solutions include building such capabilities … from the ground up … or acquiring a company … which already has the requisite capabilities. … Take the case of Starbucks frappuccino beverages. … Starbucks has sold freshly made frappuccino drinks … in their stores since 1995. … Over time the company's management concluded … that there could also be a potentially large market … of frappuccino beverages sold in prepackaged bottles … via grocery stores. … If Starbucks could successfully realize this new opportunity … it would yield significant growth for the company. … Doing so, however, posed at least two significant obstacles. …
- Recognize the problems a company may encounter if it does not achieve growth.
- Identify high-potential opportunities for growth.
- Identify new customers for existing products.
- Use assessment screens to choose the best opportunity.
- Evaluate partnerships and acquisitions as mechanisms to fuel growth.
- Break down the components of an effective and growth-minded leadership team.