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Double Digit Growth

Michael Treacy

Nitin Nair
Roll No. 63,
MMM – I, Batch 2
Growth

 Oxygen of business
 Managing growth

 Key principles – Approach to growth

 Growth – a choice
Mastering the Five Disciplines

 Base Retention
 Share Gain

 Market Positioning

 Adjacent-Market Penetration

 New lines of business


Base Retention
 Retain existing customer base
 Shape customer’s value criteria
 Increase switching costs
 Narrow customers alternatives

 Strategies to retain customers


 Make your services sticky
 Tailor your offering
 Preempt defections
 Bond with customers
Share Gain – Build or Buy
 Build
 Blunt incumbents advantages
 Deliver far better value
 Buy
 Fragmented approach - building a conglomerate
 Buy, fully integrate and build economies of scale
Market Positioning
 Show up where the growth is.

 Spot the growth plays


 Shifts in buying criteria
 Value shift
 Demographic shift
Adjacent Market Penetration
 What is adjacent market?
 Cost structures, competitors, customers & capabilities

 Key criteria
 Long term growth and profit opportunity
 Key differentiator
 Resources to match competition

 Make or Buy
New Lines of business
 Right acquisition targets
 Strike a good deal

 Keep Control
Managing for Double Digit Growth
 Assess Growth risk
 Demand Risk
 Competitor Risk
 Implementation Risk
 Operating Risk

 Managing Risk
 Adapting to market conditions
 Diversification
 Management talent
 Comprehensive Management system

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