Intensive growth strategies : A closer examination

The feasibility of modeling the effects of alternative growth strategies on market performance is the subject of this report. Intensive growth strategy alternatives are discussed in terms of key products and market variables and implied growth opportunities. Microanalytic relationships among growth strategy components are developed and then reformulated in terms of a cross-sectional econometric model. Three variations of this model are tested using the Profit Impact of Marketing Strategy (PIMS) data base. The results indicate that a main-effects model and a mixed model that allows for interaction effects among alternative growth strategies provide reasonable fits to the data. The results supporting the existence of interaction effects lend support to the contention that growth strategies are not totally divorced from one another and should consequently be considered in tandem when formulating strategy policies.