Davis Service Group Case Summary

The question is, should the company expand horizontally or should the company diversify or expand vertically? There is no clear cut answer to this question. There are advantages and pitfalls to each of these methods and there are many examples of organisation where a certain choice has proven extremely profitable and vice versa. This essay will provide advantages and disadvantages of horizontal expansion by comparing it with vertical and diversified growth. The reader will be presented with the facts and at the end will be allowed to make his own decision. One major deciding factor on growth strategy will be the organisations long term strategy and the behaviour of the Markets, and its competitors.

ir share of financial issues though their belief in growth by acquisition and diversification of products and market channels ensures their ongoing success in a volatile and evolving world market.

Under the growth-share matrix model, as an industry matures and its growth rate declines, a business unit will become either a cash cow or a dog, determined solely by whether it had become the market leader during the period of high growth.

Despite the fact that the company could grow by doing more and more acquisitions, it was vital for the company to invest in its own organic growth. The company aims to grow organically two to three times higher than the global GDP of 80% (Immelt, 2005).

your balance sheet and your numbers than relying on organic growth, and, for those at

Through these businesses, GE participates in a wide variety of markets including the generation, transmission and distribution of electricity (e.g. nuclear, gas and solar), lighting,

In addition to this, the economy has an influence as there is a need to export product and for companies to be competitive and affordable. SSG is also made up of representatives from several UK businesses. These representatives are at the heart of knowledge as to what they need to survive and move forward and also knowledgeable to what their customers want and thus what they need to change in order to meet that need.

Organic growth is where a company grows by increasing its turnover/sales revenues. (It can also be defined as growth of a company by building on its existing knowledge or resources). With an increased revenue the company can easily make profits, it then ploughs back the profits into the business enabling it to grow. To increase turnover/sales revenue the company can do so through increasing its customers (find new customers to add to existing ones) or developing new products. For instance, Sunlight and Berendsen growth is attributed more to organic growth whereby they have been able to increase their customers in existing locations and new EU operational areas.

growth strategies that have helped the conglomeration reach its current level of success is the

Apart from these three values, the company’s vision is to become the market leader in Europe. The company promises to provide quality sales, service and transportation needed to their users. Energies on customer satisfaction.

The business environment is changing rapidly and everybody wants a piece of the pie. Further, companies are fiercely competing for the greater piece of the pie by expanding aggressively beyond their current geographies, exploring virgin and new markets, forming

According to Grove and his research partner professor Robert Burgelman, there are certain conditions under which “a firm can create a new growth spurt

Without emphasize the price and product strategies previously discussed, a brief analysis of the marketing mix underlines some other specific traits of the company. An interesting aspect is represented by promotion. In the solar Industry a great part of the promotion effort lies in the downstream, and this is where SolarCity put a greater effort: on the 2,510 employees (2012), 661 work in sales and marketing and 248 work in customer care (SolarCity, “SolarCity annual report 2013”, SolarCity, 2013). SolarCity promotion relies mainly on a well-trained direct sales force used for what the founder calls in-house sales. The direct-sale force is backed up by a call center and a cross-promotion channel partner such as Home Depot (home improvement supplies superstore) and customer referrals. It is also true that not all of the promotion effort lies on the downstream of the industry. Customer sensitization, especially in a young industry such as the solar one, is a shared need and in addition seen the involvement of government in the industry join effort may become a necessity. To fight the opposition on the “Net metering” and the planned decrease in governmental subsidies many solar companies formed trade associations for lobbying purposes and industry-wide advocacy groups. In addition all companies in the industry are active supporter of various “green initiatives” aimed at the sensitization of potential customer toward a “sustainable lifestyle”. Solarcity also

With an organic growth, as the words itself could state, the company grows in a

Customers can choose of any provider, they suppose, offer them the best product for the best price. Porter states that, quality, price and style is one of the major factors that influence the purchase decision. Within the private pension industry, the brand name plays a fundamental role. Customers prefer to choose a product of a well-known provider like Allianz, Deutsche Bank or Generalli. They feel safe with them. The situation on the Polish market is almost the same as in Germany. During the interview, one of the founders of fairr.de mentioned, that the incumbents still rule the market with their products and do not need to lower their prices (Appendix 4). Nowadays it is not easy to switch from one provider to another. There are regulated fees the customer has to pay, which makes a change unprofitable (Rutecka, 2014).