More about growth strategies

Market conditions have opened up a number of tactical opportunities for investment management organisations. For instance, underpriced competitors may now be attractive acquisition targets, and entering new regional or international markets to take advantage of higher expected growth rates could now present attractive opportunities.

According to the renowned Michael Porter, most companies, including investment management organisations, tend to settle on one of two generic strategic models as they endeavour to create value for their clients and stakeholders: a low-cost leadership strategy or a differentiation strategy. A third strategic option was initially presented by Porter, which he later identified as a moderator for the other two: a ‘focus’ strategy which contains elements of both cost leadership and differentiation strategies, with the difference that specialised products and services are offered to a very narrow market segment.

The next few years will require a number of decisions from senior management, testing their abilities and resolve like no other period in history. The question is, are their organisations’ prepared for, or even capable of growth? Investment managers must ensure they have the capability to implement the strategic decisions made from both an organisational and information technology perspective.

At the following sites, Porter’s generic strategic framework is utilised to discuss in more detail the many ways in which SimCorp Dimension helps investment management organisations achieve their strategic objectives.