Pursuing a growth strategy
A DSG international case study

Page 1: Introduction

Growth is an important business aim. Growth enables a business to maintain a sharp competitive edge compared with rivals, and to benefit from other advantages such as lower costs and greater brand awareness among consumers. This case study examines how the Dixons Group has maintained an ongoing growth strategy by piloting new store formats and entering new markets. It looks at the development...
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Page 2: Ansoff´s Product-Market Matrix

In a frequently quoted article in the Harvard Business Review, titled Corporate Strategy(1957) Igor Ansoff outlined a number of growth strategies. This was based on detailed research examining typical business growth case examples. He set out the main options in the form of a matrix: Market penetration means selling more of existing products to existing markets, in order to increase market...
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Page 3: The importance of market research

An essential part of market growth strategies is to make sure that you know what your customers want (the product), and then to provide them with it - where they want it (place), at the right prices, supported by the right sorts of promotion and advertising. Market research is the process of researching your customers and the market. Market research enables a company to minimise its risks...
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Page 4: A SLEPT analysis for Electro World

Communism in Eastern Europe collapsed at the end of the 1980s and since then a number of countries have moved rapidly towards developing Western European style economic systems with free markets. Hungary and the Czech Republic have been leaders in economic reform and welcoming of business links with Western European companies. They join the expanded European Union in May 2004. The two countries...
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Page 5: Dixons xL

Since the first Dixons store was opened in 1937 the range of products has grown enormously. However, the size of stores has not grown in the same proportion, and customer choice in individual stores has been limited by the space available for display. Dixons therefore is now piloting a new format of store which offers a much wider range of products under one bigger roof. Dixons xL builds on the...
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Page 6: Conclusion

Dixons has grown from strength to strength by careful analysis of its market environment to identify the best opportunities in terms of developing its markets e.g. Electro World in Hungary and the Czech Republic, and increasing market penetration, through creating its Dixons xL proposition in the UK. The net effect is to create more opportunities for its employees, better choice for...
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