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Growth strategies - Essay Example

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It is important for an organization to develop its business activities in order to achieve growth. Growth allows corporations to accomplish the goal of maximizing shareholder’s wealth. There are four major growth strategies companies can utilize. The four growth strategies are market penetration, product development, market development, and diversification…
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Growth strategies
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Growth strategies

Download file to see previous pages... The product development strategy involves developing existing products or introducing new lines of products in order to increase the firm’s revenues. The market development strategy involves creating new markets for the company such as penetrating new geographical regions (Gaebler, 2010). Multinational corporations often utilize market development strategies. A diversification strategy makes sense when good opportunities can be found outside the present business (Kotler, 2003). Tenet Healthcare Corporation is a healthcare delivery system founded in 2003. It is one of the nation’s largest healthcare providers with 49 acute care hospitals in 11 states, 64 outpatient centers, 3.88 million outpatient visits (Tenethealth, 2009). The firm generated in 2009 over $9 billion in revenues. The company current has a presence in 22% of the United States region. The company recently made a strategic move to achieve growth. The growth strategy the company utilized was the market development strategy. The company reached an agreement with Keystone Mercy Health Plan which covers Hahmemann University and St. Christopher Hospital for Children in Philadelphia (Tenethealth, 2011). I believe that the approach utilized by the company to achieve growth was the right decision. The firm was able to successfully penetrate the Philadelphia marketplace without investing resources. ...Download file to see next pagesRead More
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