Developing growth strategies to become a market leader
An IMI case study

Page 1: Introduction

A business will not become the market leader by chance. It takes careful planning to build an organisation that outperforms its competitors. In business, these plans are called strategies. A business strategy can take many forms. For IMI, a leading engineering business, its strategies focus on growing the business within the niche markets in which it operates. A niche market is a relatively...
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Page 2: Growth as a business strategy

The purpose of a business strategy is to create a competitive advantage in the market place. Strategies are the means by which an organisation can achieve its goals. IMI’s strategies are therefore focused on growing each of its five business platforms to become the world-leading engineering company in these niche markets. Each business is different. Strategies are heavily influenced by the...
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Page 3: Organic growth

One method used to grow a business is organic growth, sometimes called internal growth. Organic growth occurs when a business grows by selling more products or services. Ansoff’s matrix outlines four ways this can be achieved: market penetration – selling more of its products to existing customers market development – selling its products to a wider market, either at home or...
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Page 4: Inorganic growth

Inorganic, or external, growth is another method used to grow a business. The main sources of inorganic growth come from mergers and acquisitions with other businesses. A merger is when two companies join together to create a new company. An acquisition is where one company buys another company which it then controls.Although a much faster method of growth than organic methods, inorganic growth...
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Page 5: Measuring growth

Organisations can measure growth in a variety of ways. For example, growth can be measured against revenue, profit, market share or the number of geographical markets in which a company operates. Comparisons can then be made between this data and data from previous years to determine if its aims and objectives have been achieved. IMI measures growth against its key growth strategies and its goal...
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Page 6: Conclusion

IMI’s growth strategy is driven by market and product developments that focus on its long-term goals. Using the global expertise of its workforce, IMI is able to develop innovative solutions for the challenges faced by its customers. These challenges are driven by IMI’s growth drivers; climate change, resource scarcity, urbanisation and ageing population. IMI has a 5 year map of its...
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