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It is a strategy of "aggregation" or expansion under which growth is achieved by expanding the scale of operations.

This strategy involves expansion of firm's product range and market. Three alternative strategies in this regard are as follows:

(a) Market Penetration: This strategy aims to seek increased sales of the present products in the present markets through more aggressive promotion and distribution. The firms tries to penetrate deeper into the market to increase its market share. More money is spent on advertising and sale promotion to increase sale volume.

(b) Market Development: This strategy aims to increase sales volume by selling the present products into new markets. For example, Pepsi Cola has achieved growth by capturing foreign markets. The existing product is pushed into new markets by changing its packaging, or band name, etc.

(c) Product Development: Under this strategy, a business seeks to grow by developing improved products for the present markets. The current product may be replaced or the new products may be introduced in addition to the existing products. The introduction of "Colgate-gel" by Colgate-Palmolive (India) Ltd. is an example in this regard.

To sum up, the intensive growth strategy involves the internal growth of the concern within its existing corporate structure. It is also known as growth through aggregation. The management of a firm may decide to grow through expansion of scale of operations in order to attain optimum size. The firm will achieve many economies in purchasing, production, financing, marketing and management.

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Q: What is an intensive growth strategy?
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