Competitive advantage:
- The basis of competitive advantage as a foundation for growth: resources and capabilities and core competences.
- Generic strategies (Porter).
- Linking competitive advantage with opportunities for growth (PESTLE).
- The development of products and services as a basis for growth.Portfolio strategies (Boston Consultancy Group Matrix and GE/Mckinsey matrix).Product life-cycles.The diffusion of innovation.
- The main routes to growth (Ansoff’s growth vectors −market penetration, product/service development, market development, unrelated diversification)
- Identifying and mitigating risk.
- Exploiting technology and digital platforms to expand network and generate growth.
- The benefits and drawbacks of collaboration,including mergers, acquisitions, joint ventures and strategic alliances and how they might be applicable growth options for small businesses.
- The benefits of horizontal and vertical integration.
- Partnerships in the value chain (e.g. bidding consortia).
- The potential of franchising for expanding a business.
LO1 Analyse the key considerations SMEs should consider when
evaluating growth opportunities
- P1 Analyse key considerations for evaluating growth opportunities and justify these considerations within an organisational context.
- P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
- M1 Discuss the options for growth using a range of analytical frameworks to demonstrate the understanding of competitive advantage within an organisational context.
- D1 Critically evaluate specific options and pathways for growth, taking into account the risks of each option and how they can be mitigated
