Previously, the concept of strategy was used only in military situations, but now the meaning of this term has expanded significantly. Now the owner of each business should think over the strategy. It should, but in reality this is not always the case.

Very often, a company's business strategy looks something like this: get into a fight, and then we'll see. This leads to the fact that all actions are performed "by touch". While there is an element of luck in business, success is much more about hard work and a premeditated plan than it is about chance.

A clear business development strategy will allow you to approach business systematically, take meaningful actions and achieve predictable results. We will analyze the types of business development strategies in today's article.

Types of business strategies:

1. The strategy of concentrated growth. This strategy provides for strengthening the company's position in the market. Within the framework of this direction of development, the manufactured product can be improved, or something new can be created that is more in demand by customers.

2. Integrated growth strategy. Business strategies of this type are implemented by expanding the business structure, opening new divisions. The company can develop from within, or it can buy other companies that are engaged in related activities.

Thus, it is possible to reduce business costs and receive additional profit where investments were previously required.

3. Diversification growth strategy. With this strategy, the company seeks to go beyond its own influence.

For example, it expands the range of goods or services that are not related to the current line of offers. Another option for this type of small business strategy is to look for new activities without being tied to existing ones.

4. Reduction strategy. Sometimes it takes two steps back to take a step forward. In an unstable market situation, the company's management may choose the organization's business strategy, which implies the closure of the business or part of it, a sharp reduction in costs, or obtaining the maximum benefit in short time followed by liquidation of the company.

This often allows you to get out of a crisis situation with minimal losses.

Developing a business strategy and choosing the most appropriate one requires experience, intuition, the ability to obtain and analyze information from reliable sources, understanding business processes and the market situation.

AT modern world everything is changing rapidly, and it is critically important to change the strategy in time if the external or internal situation has changed. In this case, you need to follow the chosen path, if there is no force majeure. One way or another, the thinking of a business strategist makes sense to develop for every entrepreneur.

Now the types and characteristics of business strategies are not a secret for you. AT the following materials Let's talk about each type of strategy separately. Stay in touch.

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There have always been individuals who did not recognize working for someone, wanting to do own business. There are also people who, after working at any enterprise, open their own business.

To date, the issue of opening your own business is particularly relevant, since real incomes have fallen due to the state of the country's economy. And having opened your own company, you can have a decent income, working for your own pleasure.

What do you need to start your own business?

In order to start working for yourself, you need an idea, a large amount of money needed to acquire fixed assets, as well as a clear business strategy.

But how to make sure that the business not only works, but also brings the necessary income, without involving its owner in losses? The answer is simple - you need to have and follow a professionally developed strategy.

A business strategy is a specific approach to doing business that is developed based on the current state of affairs, as well as the desires of shareholders or owners of the company.

What types exist?

There are many methods and plans in the world that are developed both for a specific enterprise and for the industry as a whole, or suitable for a specific group of companies.

Moreover, each business strategy has its own specific features. Exploring each of them, we can distinguish the following types:

1. Concentrated magnification.
2. Integrated magnification.
3. diversified expansion.
4. Abbreviations.

In addition, each of them has several subspecies, which will be discussed later.

Concentrated Increase Strategy

Let's take a look at the essence of such a business strategy. It is associated with a change in the goods produced or services provided, as well as with a change in the market. At the same time, the main industry in which economic activity is carried out does not change.

In such a business strategy of the enterprise, the following areas of change can be distinguished:

• Increase in market share. It implies winning more customers through various marketing moves, as well as establishing new partnerships (buying up competitors or merging into one company, mutual cooperation agreements). Advertising is expensive, but organizations see it as an investment in their business.
• Search for new markets. In this case, the company will diligently look for new markets. Usually this is an expansion of the sales territory or an attempt to attract new category consumers.
• Product improvement. It involves the redesign or improvement of manufactured products. If this does not bring success, then a the new kind product that the company is selling.

A business strategy of this nature works well especially for those companies that have enough resources and have a product that fits. different categories consumers.

Such a business development plan will not suit all manufacturers due to the lack of recognition in the market.

Integrated increase strategy

This type of strategy is usually used by companies that are developing successfully and want to increase their market share, as well as their profits.

Such a development plan is divided into two subspecies:

• Supply regulation. This means strengthening control over suppliers of inputs for production. In addition, it is possible to open their own branches or subsidiaries who will partially or fully fulfill the role of suppliers of raw materials. If only one or two suppliers have the right raw materials, then they can begin to impose their own conditions, which will go against the goals of the company and be unprofitable for it. In this case, it is better to start mining resources on your own and not go on about.

• Development of the sales network. It often happens that points of sale do not correspond to the level necessary for large sales and cannot satisfy all the demand both in terms of quantity and quality. The purpose of this type of business strategy is to start selling goods independently at the proper level, as well as improve the quality of current points of sale. In this case, this is an excellent plan for the development of the company.

Such business strategies of the organization will require certain financial resources, which will need to be invested in the development of the sales network or sources of supply.

The company should soberly assess whether it can painlessly "pull out" working capital the necessary funds, or it is worth seeking help from external investors.

Diversified Expansion Strategy

Such strategies are developed for companies that have exhausted themselves. This can be expressed in a slowdown in the pace of development or a decrease in its popularity due to the following factors:

• consumers have already become fed up with the goods and are rather tired;
• the market is already crowded with the type of product being produced;
• the industry is experiencing a decline in consumption.

Despite the dangerous circumstances for the further development of the company listed above, there are several subspecies of this strategy that will allow you to emerge victorious from this situation:

• Development of new production. The main task for the company when following such a strategy is to accumulate necessary resources to start production new products, which can be sold in the occupied market. A lot of resources will be required, because it is necessary to master new production processes and technologies.
• Mastering the production of related products. You can also try the production of products that will complement the main product. This requires a smaller amount of costs, in comparison with the previous subspecies, however, a lot of infusions are required. It is not necessary to look for new ways of marketing for such products, the existing opportunities will be enough, since they will complement the main product.
• Start of production of new products for other markets. If the management is confident that the previous two subtypes will not help the company, then it decides to try to establish additional production, which will be focused on a new type of product and new markets. Such a strategy would cost a lot. Small businesses will not be able to easily and painlessly find the necessary cash as opposed to large corporations.

These types of strategies are much more resource intensive and rely heavily on skills. management personnel in resolving such issues. Without competent leadership, such a path will not succeed.

Reduction strategy

Very often, after a period of rapid growth, there is a slowdown in development or even a decline in production. This is due to many factors that depend not only on the company itself, but also on the surrounding market.

In addition, there are also foreign economic and political components that also affect the development of a particular industry, market and individual company.

Need to soberly assess the situation

In such cases, there is good reason to consider downsizing strategies in order to preserve and improve the level of production efficiency, as well as enhance the company's financial security.

This business management strategy has the following subspecies:

• Liquidation. It is used only when the company no longer has a chance to exist. It is considered a plan to close the enterprise.
• Immediate income. Strategies of this subspecies are used to maximize income in the minimum amount of time. Usually it is used by those companies that do not see their further development and want to leave the market. At the same time, they want to get the maximum possible profit in this process. To do this, they begin to reduce workers, stop servicing goods and reduce other costs that do not affect profits.
• Partial closure. It is used in cases where a company wants to get rid of the non-profit area of ​​its business, or to obtain additional funds that can be invested in successful production.
• Cost reduction. Such a business development strategy is used by companies that want to increase labor productivity and production efficiency. For this, ways are being sought to reduce costs. This can be achieved as an automation production process, and the reduction of "extra" staff.

Of course, in practice, the same company may simultaneously use a strategy that will include several of the types listed above at once.

Without a good clear strategy, results can be unpredictable

AT recent times very often they use the word start-up (from the English start up), which means the beginning of the implementation of some new and good business idea.

Indeed, it is very important to find your niche in the market for the provision of services or the sale of goods - this is quite difficult in a highly competitive environment.

It is necessary to have and follow an approved development strategy

But, in addition to a good start, you need to have the right business plan so that such a start does not quickly change into bankruptcy. Such a plan is a business strategy, adhering to which, you can not only successfully implement economic activity, but also successfully develop, increasing profits.

So if you want to lead profitable business, then be sure to take up such a matter as developing business strategies, or entrust it to knowledgeable professionals. After all, this procedure is a complex task that can only be mastered by experienced professionals.

Defining a strategy for an organization fundamentally depends on the specific situation in which the organization finds itself. But there are some general approaches to strategy formation and some general boundaries that limit strategies.

AT general view strategy is the general direction of the organization's actions, following which in the long term should lead it to the goal. Such an understanding of the strategy is valid only from the point of view of the top management level of the organization.

For a low level in the hierarchy, the top level strategy turns into a goal. For example, a market behavior strategy developed for the company as a whole looks like targets for the company's marketing department.

We will consider strategy as a whole for the organization. In determining the firm's strategy, management addresses three main questions related to the state of the organization in the market:

What business (type of activity) to stop;

Which business to continue;

What business to go to.

This means that the strategy focuses on:

What the organization does and does not do;

What is more important and what is less important in the organization.

According to a well-known theorist strategic planning M. Porter, there are three main areas for developing a strategy for the behavior of a company in the market:

1. The first area is related to leadership in minimizing production costs. This type of strategy is related to the fact that the organization achieves the lowest costs of production and sale of its products. Due to this, it can afford lower prices for similar products and thus win market share. Such firms must have a high level of organization of production and supply, good technology and engineering base, as well as effective system product distribution. That is, in order to reach least cost, it is necessary that the cost of production be the lowest. Marketing with such a strategy does not require high development.

2. The second area of ​​strategy development relates to product specialization. In this case, the firm must carry out highly specialized production and marketing in order to become a leader in the production of its products. This leads to the fact that buyers choose this brand of goods, even if the price is high enough. Such a firm should have a high potential for scientific developments, designers, supply chain High Quality products, as well as developed system marketing.

3. The third area of ​​strategy definition relates to fixing a market segment and concentrating the firm's efforts on it. It does not work on the entire market, but carefully studies the needs of the market of a certain specific type products. In this case, the firm may seek to reduce costs or pursue a policy of specialization in the production of a product. But the main thing for an organization, if it pursues a strategy of the third type, is the mandatory construction of its activities primarily on an analysis of the needs of customers in a particular market segment. That is, it should take into account the needs not of the market in general, but of quite specific, perhaps even specific, customers.

The most common, proven by practice and widely clarified in the literature, business development strategies are called basic, or reference. They highlight four different approaches to organizational growth that involve changes to one or more elements:

product;

Industries;

The state of the organization within the industry;

Technology.

Each of these elements can be in one of two states:

a) the current situation;

b) new state.

The first group of reference strategies are the so-called "concentrated growth strategies".

These include strategies related to product and/or market changes and do not address the other three elements. In this case, the company is trying to improve its product or start producing New Product without changing the industry. With regard to the market, the firm is looking for opportunities to improve its position in an existing market or move to a new one. This group of concentrated growth strategies includes strategies:

1. The strategy of strengthening the position in the market, when the company does everything so that with this product on this market win the best position.

A large marketing effort is needed to implement this strategy. The implementation of this strategy also involves the implementation of the so-called "horizontal integration", through which the organization tries to establish control over its competitors.

2. A market development strategy that involves finding new markets for a product that is already in production.

3. The product development strategy involves growth through the production of a new product and its implementation in the market captured by the organization. The second group of reference strategies are those business strategies that involve the expansion of the organization by adding new structures. These strategies are called integrated growth strategies. An organization can achieve integrated growth both through acquisition of ownership and through expansion from within. At the same time, the company's position in the industry changes.

There are two main types of integrated growth strategies:

1. The strategy of reverse vertical integration, aimed at the growth of the company through the acquisition or strengthening of control over suppliers, as well as through the formation of subsidiaries that are suppliers.

Such a strategy can provide the firm with positive results associated with reduced exposure to component price fluctuations and supplier requests. In this case, supplies, as a type of expense for the firm, can turn into a type of income.

2. Vertical integration strategy, stepping forward. It is expressed in the growth of the acquisition or control over the structures located between the firm and the consumer, that is, control over the system of distribution and sale.

This type of integration is beneficial when the services of intermediaries are greatly expanded or when the firm cannot find intermediaries with a quality level of work.

The third group of reference business development strategies is diversified growth strategies. These strategies are implemented if the firm can no longer develop in this market with this product within this industry. Strategies of this type are the following: 1. The strategy of centered diversification, which is based on the search and use in existing business additional opportunities for the production of new products. At the same time, the existing production remains at the center of the business, and the new one arises based on the opportunities that exist:

a) in the mastered market;

b) according to the technology that is used, or in other strengths operating company.

2. A horizontal diversification strategy that seeks growth opportunities in an existing market through new products. Such a strategy requires new technology which is different from the existing one. The firm should focus on the production of such technologically advanced products that would use the current capabilities of the firm (for example, in the supply industry). Due to the fact that the new product must be oriented to the consumer of the main product, its qualities must be oriented towards the consumer of the main product, its qualities must accompany the product that is being produced.

An important condition for the implementation of such a strategy is a previous assessment by the company of its own competence in the production of a new product.

3. The strategy of conglomerate diversification, which consists in the fact that the company expands through the production of products that are not technologically related to new products that are produced and sold in new markets. This is the most difficult strategy to implement, because successful implementation depends on many factors, in particular on the competence of the existing staff, especially managers.

The fourth group of reference business development strategies are reduction strategies.

These strategies are implemented when a firm needs to realign forces after a long period of growth, or in tandem with the need to increase efficiency when there is a recession and dramatic changes in the economy (for example, structural adjustment). In this case, firms consciously use a purposeful and planned reduction.

This process is not painless for the company. But one must bear in mind that these strategies are the same strategies for the development of the company as the growth strategies discussed above, and under certain circumstances they cannot be avoided as the only opportunity for business renewal. The following types of targeted business reduction strategies are distinguished:

1) liquidation strategy. It is used as a last resort when the company can no longer carry on business;

2) reduction strategy. It consists in the fact that the company closes or sells one of its subdivisions in order to implement long-term changes in the limits of business. Such a strategy is implemented when it is necessary to obtain funds for the development of more promising or for the start of new goals that meet the long-term goals of the company;

3) cost reduction strategy. Behind the main idea is the search for opportunities to reduce costs and carry out appropriate measures to reduce them. characteristic feature This strategy is that it is designed to eliminate rather small sources of costs, and also that its implementation is in the nature of temporary and short-term measures. The implementation of this strategy is associated with a decrease in production costs, an increase in productivity, a reduction in hiring and even the release of personnel, the cessation of production profitable goods and closing profitable capacities.

In practice, a firm can simultaneously implement several strategies. This is especially true in multi-industry companies. A firm can pursue a sequence in the implementation of strategies, then it is considered that the firm implements a combined strategy.

A strategy is required for the competent management of a company. Its meaning is to ensure the development of business. The entrepreneur needs to understand what measures he needs to take to develop the company. Business development is based on specific methods for solving a particular situation. In the ancient world, the word "strategy" was used by the military, today the scope of this word has expanded significantly. Now this definition is used by specialists working in the field of management. Since the market situation is constantly changing, a business strategy is essential for all organizations.

Strategy Development

In order to implement the plan, the manager must have the authority. In addition, the manager will need resources. Only by combining these two factors can a company be successful.

It is important for each company to choose the right development plan and focus on its implementation. When developing it, one should remember that it will take time to implement the strategy. The finished strategy contains specific steps. Thanks to a clear plan, the leaders of the enterprise know how to act in order for the company to achieve its goals.

Managers in developing a company development plan must solve three important questions:

• what direction in business can be liquidated;
• what direction should be developed further;
• what business to go into.

Top managers should focus on solving two issues. First, they must decide what the company owes. Secondly, top managers need to determine the main and secondary aspects of the company's work. A well-designed business development strategy allows you to achieve these goals.

Types of strategies

If you do not know which business strategy to choose, then start your research from current situation. Most often, entrepreneurs use basic strategies in their work, experts call them reference ones. These are 4 approaches, by choosing which you can significantly improve the position of the company in the industry. Each strategy has its own set of elements. Some are given more attention, others are less important. The decision to choose a strategy is made by an experienced top manager or business owner.

If we talk about the elements that contain strategies, we can distinguish the following:

• market;
• the industry in which the company operates;
• a product or service produced by a firm;
• place of the organization within the industry.

The top manager must consider all of these elements. They are studied either in the current situation or in the future.

concentrated growth. This strategy assumes that the company will either go to new market or change their product. If we talk about other elements, they will remain the same. It is better for the enterprise to concentrate on the quality of its products, to maximize the quality of an existing product. It is possible to launch a new one. It is worth noting that in this case the industry does not change.

Company leaders or business managers must constantly look for new opportunities. It is at their expense that the company can significantly improve its position, the company's transition to a new market is possible. To pay attention commodity policy your enterprise. In addition, we should not forget about the analysis of market segmentation, it must be done especially carefully.

integrated growth. This strategy envisages that the firm will expand after internal changes. In addition, the development of the company can be achieved if you buy a new property. You can choose any option. Remember that the position of the organization within the industry after the implementation of such a strategy will change significantly.

It will be very good if the company acquires already ready-made enterprises. Particularly profitable are those transactions in which the firm gains control over organizations that supply components.

If this is not possible, then you should consider creating a new enterprise, this will bring significant benefit base business.

By following these steps, you will get rid of the addiction. You will no longer worry about the requirements that supplier companies put forward. You will avoid dependence on business partners. This is a strategic step to protect the interests of your company.

Experienced entrepreneurs prefer to take control of the structures that sit between the consumer and the business.

So the company can expand intermediary services or increase their level. diversified growth. This strategy is well suited to those firms that decide to change industries or enter a new market. It is also suitable for those companies that wish to launch a new product.

The strategy can be implemented if the company uses existing equipment in its work, starts producing new product. You can also do this on an already developed market by changing technological process. But there is another way. It lies in the fact that the company must not only release a new product, but do it using a completely new technology. It is worth selling such a product in a completely new market. The product should not be related in terms of technology to those that the company produced earlier.

This is the most complex strategy an enterprise can adopt. Experience is required from management and management staff. In addition, the firm must employ competent staff. An important point opportunity to raise additional capital. This is a risky strategy; it cannot be implemented without the additional involvement of competent personnel and funds.

Purposeful reduction. This is a good plan for the development of the enterprise, if you need to regroup forces. In addition, the strategy is used to improve work efficiency. At the same time, the company's management is reducing staff, which is why the process must be carefully planned. This is a very painful strategy, but it works best in certain circumstances. It is with its help that business leaders get the opportunity to renew the organization.

Such a strategy can sometimes take extreme forms, and then the sale of parts of the firm begins. Usually they sell the unit that does not make a profit. The proceeds are directed to the development of income-generating areas.

Experts identify the strategy of "harvesting". It assumes that the company will take a new position. It will not work on distant goals, but will focus on making a profit in the current moment. Such a strategy is chosen if the enterprise cannot be sold at a profit, and the business has no prospects.

How are things in reality?

If we talk about the real situation, then most of the enterprises simultaneously work using different types of business strategies. This ensures the sustainability of the company's development. This is how an effective combined strategy is prepared that ensures business development.

Many entrepreneurs ask the question of how to know the time to change strategies. This can be done in the following cases:

• you see that the efficiency of work is falling;
• competitors in close proximity to your firm's position in the market have begun unforeseen actions;
• the number of customers is falling, dissatisfaction is growing among the company's staff;
• a person appears in the management who demands strategic reforms in the company.

This becomes an occasion to consider other types of business development strategies.

Strategy development: rules and approaches

If we talk about the development of the plan, then the main approach is that all documents should be developed by the head of the enterprise. There is a delegated authority approach. In this case, the business owner or top manager gives the order to develop an action plan to competent employees. The advantages of this approach include the fact that managers of different levels will work on the documents. The disadvantages include the lack of control by the head of the enterprise.

A joint approach is also possible. It is based on the coordinated development of a plan by subordinates under the leadership of a top manager or owner of the enterprise. There is also a proactive approach. It is based on the fact that the head of the company pushes employees to independently develop a strategic plan.

What factors determine the strategy?

If you have started developing a business strategy, then pay attention to internal and external factors. They differ in heterogeneous composition. In addition, each factor has its own significance for the industry. Factors may change over time. To internal factors can be attributed ethical principles and personal qualities leader. It is important to determine the strengths of the company, it is necessary to pay attention to its weaknesses. Assess the advantages of your company over competitors. Consider and corporate culture firms.

To external factors attribute the risks and level of competition to the product. It is necessary to pay attention to the legislation, social norms.

Download Required documents can be on specialized portals public services. Of great importance is the attractiveness of the industry in which the company operates. In addition, it is recommended to draw up profiles of the near and far environment of the enterprise. This will help to study the environment of the organization, will identify important factors for the company.

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Defining a strategy for a firm fundamentally depends on the specific situation in which it finds itself. In particular, this concerns how the company's management perceives various market opportunities, what strengths of its potential the company intends to use, what traditions in the field strategic decisions exist in the firm, etc. In fact, it can be said that as many firms exist, as many specific strategies exist. However, this does not mean that it is impossible to typify management strategies. An analysis of the practice of choosing strategies shows that there are common approaches to formulating a strategy and a common framework in which strategies fit.

As already mentioned, in the most general form strategy isgeneral direction of action of the organization, following whichrum in the long run should lead it to thetarget. Such an understanding of the strategy is valid only when it is considered at the top level of the organization's management. For a level lower in the organizational hierarchy, stratumThe higher-level gia turns into an end, although for a higher level it was a means. So, for example, market behavior strategies developed for the company as a whole act as targets for the marketing service of this company. To avoid ambiguity in the interpretation of strategies, we will consider only the strategies of the organization as a whole, and not its individual units.

When defining a firm's strategy, management faces three main questions related to the firm's position in the market:

Which business to terminate;

Which business to continue;

What business to go to.

In doing so, attention is focused on:

What the organization does and does not do;

What is more important and what is less important in the activities carried out by the organization.

Strategy Approaches

One of the leading theorists and experts in the field of strategic management M. Porter believes that there are three mainapproach to the development of a strategy for the company's behavior in the market.

The first approach is related to leadership in cost minimizationproduction. This type of strategy is due to the fact that the company achieves the lowest production and sales costs of its products. As a result, it can, at the expense of more low prices for similar products to gain a larger market share.

Firms pursuing this type of strategy should have good organization production and supply, good technology and engineering base, and good system product distribution. In order to achieve the lowest costs, everything that is connected with the cost of production, with its reduction, must be carried out at a high level of performance. Marketing with this strategy does not have to be highly developed.

The second approach to strategy development is related to specializationin product manufacturing. In this case, the firm must carry out highly specialized production and high-quality marketing in order to become a leader in its field. This leads to the fact that buyers choose the products of this company, even if the price is quite high. Firms pursuing this type of strategy must have high R&D capacity, excellent designers, excellent product quality assurance, and a strong marketing system.

The third approach refers to fixing a specific segmentmarket and concentration of efforts firms in the selected market segment. In this case, the company thoroughly finds out the needs of a certain market segment in a certain type of product. In this case, the firm may seek to reduce costs or pursue a policy of specialization in the production of the product. It is also possible to combine these two approaches. However, what is absolutely obligatory for carrying out a strategy of the third type is that the company must build its activities, first of all, on an analysis of the needs of customers in a certain market segment. That is, in its intentions, it must proceed not from the needs of the market in general, but from the needs of quite specific or even specific clients.

Let's consider some of the most common, practice-tested and widely covered business development strategies in the literature. These strategies are usually called basic, or reference. They reflect four different approaches to the growth of the company and are associated with a change in the state of one or more elements: 1) product; 2) market; 3) industry; 4) the position of the firm within the industry; 5) technology. Each of these five elements can be in one of two states: the existing state or the new state. For example, in relation to a product, this could either be a decision to produce the same product or to move on to the production of a new product.

§ Concentrated Growth Strategy

one). The first group of reference strategies are the so-called concentrated growth strategies. This includes those strategies that are associated with a change in the product and (or) market.
and do not affect the other three elements. If you follow this
strategies a firm is trying to improve its product or start
produce a new one without changing the industry. Concerning
market, the company is looking for opportunities to improve its position in the existing market or move to a new one.
market.

The specific types of strategies of the first group are the following:

market position strengthening strategy, in which the company does everything to win the best position with this product in this market. This type of strategy requires a lot of marketing effort to implement. There may also be attempts to implement the so-called horizontal integration, in which the firm tries to establish control over its competitors;

market development strategy, which consists in finding new markets for an already produced product;

product development strategy, which involves solving the problem of growth through the production of a new product that will be sold on the market already mastered by the company.

§ Integrated growth strategies

2). The second group of reference strategies includes such business strategies that are associated with the expansion of the company by adding new structures. These strategies are called strategiesintegrated growth. Typically, a firm may resort to implementing such strategies if it is in strong business, cannot implement a strategy of concentrated growth at the same time, integrated growth does not contradict its long-term goals. A firm can pursue integrated growth, both through acquisition of ownership and through expansion from within. In both cases, there is a change in the position of the firm within the industry.

There are two main types of integrated growth strategies:

reverse vertical integration strategy It is aimed at the growth of the company through the acquisition or strengthening of control over suppliers. A firm can either create supply subsidiaries or acquire supply companies. Implementing a reverse vertical integration strategy can give a firm very favorable results in terms of reducing exposure to component price fluctuations and supplier requests. Moreover, supply as a cost center for a firm can become, in the case of reverse vertical integration, a revenue center;

forward vertical integration strategy It is expressed in the growth of the firm through the acquisition or strengthening of control over the structures located between the firm and the end user, namely distribution and sales systems. This type of integration is very advantageous when intermediary services are greatly expanded or when the firm cannot find intermediaries with a quality level of work.

§ Diversified Growth Strategies

3). The third group of reference business development strategies are diversified growth strategies. These strategies are implemented when the firm can no longer develop in a given market with a given product within a given industry. The main factors determining the choice of a diversified growth strategy are formulated:

Markets for ongoing business are in a state of saturation or a reduction in demand for the product, due to the fact that the product is at the stage of dying;

The current business gives an inflow of money that exceeds the needs, which can be profitably invested in other areas of the business;

A new business can generate synergies, for example through better use of equipment, components, raw materials, etc.;

Antitrust regulation does not allow further expansion of business within the industry;

Tax losses can be reduced;

Access to world markets can be facilitated;

New qualified employees can be attracted or the potential of existing managers can be better used.

The main strategies for diversified growth are as follows:

centered diversification strategy is based on the search and use of additional opportunities for the production of new products, which are concluded in the existing business. That is, the existing production remains at the center of the business, and the new one arises based on the opportunities that are contained in the developed market, the technology used, or in other strengths of the firm's functioning. Such capabilities, for example, may be the capabilities of the specialized distribution system used;

horizontal diversification strategy involves looking for growth opportunities in an existing market through new products that require a new technology that is different from the one being used. With this strategy, the firm should focus on the production of such technologically unrelated products that would use the already existing capabilities of the firm, for example, in the field of supply. Since the new product must be oriented to the consumer of the main product, it must be related in its qualities to the already produced product. An important condition for the implementation of this strategy is a preliminary assessment by the company of its own competence in the production of a new product;

conglomerate diversification strategy consists in the fact that the company expands through the production of technologically unrelated new products that are sold in new markets. This is one of the most difficult development strategies to implement, since its successful implementation depends on many factors, in particular, on the competence of the existing staff and especially managers, seasonality in the life of the market, the availability of the necessary amounts of money, etc.

§ Reduction strategies

4). The fourth type of reference business development strategies are reduction strategies. They are implemented when the company needs to regroup forces after a long period of growth or in connection with the need to increase efficiency, when there are recessions and fundamental changes in the economy, such as, for example, structural adjustment, etc. In these cases, firms resort to the use of targeted and planned production reduction strategies. The implementation of these strategies is often not painless for the firm. However, it must be clearly understood that these are the same strategies for the development of the company as the growth strategies discussed, and under certain circumstances they cannot be avoided. Moreover, sometimes these are the only possible strategies for business renewal, since in the vast majority of cases renewal and growth are mutually exclusive business development processes.

There are four types of targeted business reduction strategies:

liquidation strategy represents an extreme case of a reduction strategy and is carried out when the firm cannot conduct further business;

harvesting strategy involves abandoning the long-term view of the business in favor of maximizing revenue in the short term. This strategy is applied to an unpromising business that cannot be sold profitably, but can generate income during the "harvest". This strategy involves reducing procurement costs, by labor force and maximizing income from the sale of the existing product and the continued decline in production. The “harvest” strategy is designed to ensure that, with a gradual reduction this business achieve zero for the period of reduction in obtaining the maximum total income;

reduction strategy is that the firm closes or sells one of its divisions or businesses in order to effect a long-term change in the boundaries of business. Often this strategy is implemented by diversified firms when one of the industries does not fit well with others. This strategy is also implemented when it is necessary to obtain funds for the development of more promising or the start of new ones that are more in line with the long-term goals of the company's businesses. There are other situations that require the implementation of a reduction strategy;

cost reduction strategy is quite close to a reduction strategy, since its main idea is to look for opportunities to reduce costs and carry out appropriate measures to reduce costs. However, this strategy has certain distinctive features which consist in the fact that it is more focused on the elimination of rather small sources of costs, and also in the fact that its implementation is in the nature of temporary or short-term measures. The implementation of this strategy is associated with a reduction in production costs, an increase in productivity, a reduction in hiring and even layoffs of personnel, the cessation of production of unprofitable goods and the closure of unprofitable facilities. We can assume that the cost reduction strategy turns into a reduction strategy when divisions or, in a sufficiently large amount, fixed assets begin to be sold. In real practice, a firm can simultaneously implement several strategies. This is especially true for multi-industry companies. The firm can also pursue a certain sequence in the implementation of strategies. Regarding the first andsecond cases say that the firm is carrying out combinednew strategy.