LO1 Analyse the key considerations
SMEs should consider when evaluating growth opportunities
Competitive
advantage:
The basis of
competitive advantage as a foundation for growth: resources and capabilities
and core competences.
Generic
strategies (Porter).
Linking
competitive advantage with opportunities for growth (PESTLE).
New products
and services: innovation:
The development
of products and services as a basis for growth.
Portfolio
strategies (Boston Consultancy Group Matrix and GE/Mckinsey matrix).
Product
life-cycles.
The diffusion
of innovation.
Growth
options:
The main
routes to growth (Ansoff’s growth vectors − market penetration, product/service
development, market development, unrelated diversification)
Identifying
and mitigating risk.
Exploiting
technology and digital platforms to expand network and generate growth.
Collaboration:
The benefits
and drawbacks of collaboration, including mergers, acquisitions, joint ventures
and strategic alliances and how they might be applicable growth options for
small businesses.
The benefits
of horizontal and vertical integration.
Partnerships
in the value chain (e.g. bidding consortia).
The potential
of franchising for expanding a business.
