Share-increasing strategies

"Significantly and permanently increase the market share of the business involved. Such strategies imply a level of investment substantially greater than the norm for the industry" (Hofer & Schendel, 1978, p. 103).

Growth strategies

"Designed to maintain position in rapidly expanding markets. Thus, while they often require moderately high investments in absolute terms, they do not require levels of investment above the industry average" (Hofer & Schendel, 1978, p. 103).

Profit strategies

"Maximize a business’s utilization of its existing resources and skills. Investment under such strategies is usually at maintenance levels, so that the cash throw-off from such businesses is usually both positive and high: (Hofer & Schendel, 1978, p. 103).

Turnaround strategies

"Reverse the declining fortune of the business involved as rapidly as possible. Sometimes these strategies are self-financing, and sometimes they require infusions of capital and other resources" (Hofer & Schendel, 1978, p. 103).

Liquidation or divestiture strategies

"Generate as much positive cash flow as possible while consciously withdrawing from the business" (Hofer & Schendel, 1978, p. 103).

Market concentration & assets reduction strategies

"Realign the resources and skills of the business to make them correspond to the (new) market segments that the business intends to serve. Even though these strategies usually require the sale or shutdown of some of the business’s existing asset base, moderate additional cash investments often are needed to refocus the remaining assets" (Hofer & Schendel, 1978, p. 103).

Source: Hofer, C. W. & Schendel, D. (1978). Strategy formulation: Analytical concepts. St. Paul, MN: West.

- R. S. Kulzick - 02/01/00 -