Growth strategies are of two kinds as discussed below:

1.    Internal Growth Strategies. These imply planned increase in the size and operations of a business by expanding the internal units and sub-units. Progressive firms plough back a portion of earnings into the business every year. This leads to the growth of production and sales turnover of the business. The firm can concentrate on the existing products and also take up new products to ensure rapid internal growth. Attempts are made to increase sale in the existing markets and also develop new markets. The strategies employed by the management include:
(i)    intensive growth.
(ii)    diversification, and
(iii)    modernization.

2.    External Growth. Some firms follow the strategy of external growth an external growth is faster than the internal growth. External growth may be attempted but the business houses through the following strategies: (i) merges and acquisitions; ands  (ii) joint ventures. Merger leads to combination of independent units to cheek competition, achieve economies of large scale and even modern production facilities. A joint venture is a new business unit created as a result of partnership between two business houses to undertake productions and distribution of a new product such as a new-generation computer, fuel efficient car, etc.

Thus, there are five types of growth strategies which may be followed by the business firms. These include:

1.    Intensive growth strategy.
2.    Diversification strategy.
3.    Modernization strategy.
4.    Integrative growth strategy.
5.    Growth through joint ventures.

For more help in Types of Growth Strategies click the button below to submit your homework assignment