Among different business growth strategies intensive and integrative growth strategies are most common. If you have tried out and exhausted all the steps in intensive growth strategy and still lack the desired growth and development, it is time to consider growth through integrative growth strategies or acquisition. However, the problem is that almost 75% of all acquisitions fail to provide the desired results and in most cases merger result in a total disaster. Follow the viable alternatives while implementing an integrative growth strategy for your business.Forward acquisitions can be implemented by buying component enterprises that are part of your distribution chain.
The horizontal strategy
You may follow the horizontal strategy if you are not yet ready for the forward integrative growth strategy. In this growth strategy you will be involved in buying any competing businessor businesses. If you implement this strategy it will not only fuel the growth of your company but will also eliminate any obstaclethat may arise due to the competing company in the future thereby affecting your growth in a negative way. You will be able to eliminate any potential or real competitor following such acquisition policy. Over the years you will be able to create a shortcut to product development and at the same time increase your share of the market.
The backward method
Lastly, you can even follow the backward integrative growth strategy. In this specific method of acquisition, you will be involved in buying one of your suppliers. This will ensure that you have a better control over your supply chain in the future. In the process, you will be able to create and develop newer and better products more quickly and possibly at a much cheaper rate. You will be able to customize your product or services according to the need of your clients and your business as well ensuring the desired growth.