1. Introduction

Strategic management not only concerns the analysis of internal and external environments and the selection of strategic direction but also the methods through which strategies are implemented. Once an organisation has chosen its growth path using tools such as the Ansoff Matrix or Porter’s Generic Strategies, it must decide how to achieve that growth in practice. These choices are known as strategic methods.

Strategic methods refer to the mechanisms by which organisations pursue strategic objectives. The most widely recognised strategic methods include organic growth, mergers and acquisitions (M&A), strategic alliances, and joint ventures (Johnson et al., 2017). Each method involves different levels of risk, control, investment, and organisational complexity.

In contemporary business environments shaped by digital transformation, globalisation, and sustainability pressures, the selection of strategic methods has become increasingly complex. Firms must balance speed of expansion with cultural integration, financial risk, and ethical responsibility. Strategic methods therefore play a central role in translating strategic plans into organisational action.

This article provides an in-depth analysis of the main strategic methods used by organisations to achieve growth and competitive advantage. It explores their theoretical foundations, practical characteristics, and strategic implications. The article also examines their relevance for startups and SMEs, their role in digital and sustainable business models, and the limitations and challenges associated with each method. Strategic methods are positioned as the operational bridge between strategy formulation and strategy implementation.

2. Theoretical Foundations of Strategic Methods

Strategic methods are grounded in several streams of strategic management theory. Classical strategic planning theory assumes that managers select rational methods to achieve strategic objectives (Ansoff, 1957). Resource-Based View (RBV) theory emphasises that strategic methods should be chosen according to organisational resources and capabilities (Barney, 1991).

Transaction cost economics explains why firms choose between market-based arrangements (alliances) and internalisation (acquisitions) (Williamson, 1985). Institutional theory highlights how legal systems, cultures, and regulations shape strategic method choices, especially in international markets (Scott, 2014).

Strategic methods are therefore not purely economic decisions but also organisational and social processes. The choice between organic growth and acquisition, for example, reflects differences in control, speed, learning, and risk tolerance.

3. Organic Growth

3.1 Definition and Characteristics

Organic growth refers to expansion achieved through an organisation’s internal resources and capabilities rather than through external partnerships or acquisitions. It involves increasing sales, developing new products, and entering new markets using existing organisational structures (Grant, 2016).

Organic growth typically includes:

  • product innovation

  • market development

  • capacity expansion

  • hiring employees

  • investment in marketing and technology

It is often associated with long-term strategic development and organisational learning.

3.2 Strategic Logic of Organic Growth

The logic of organic growth is based on control and coherence. Firms retain full ownership of strategy and operations, allowing them to maintain organisational culture and brand identity. Organic growth also supports the development of dynamic capabilities such as innovation and learning (Teece et al., 1997).

Organic growth is particularly suitable when:

  • growth is incremental

  • markets are stable

  • capabilities already exist

  • risk tolerance is low

3.3 Advantages of Organic Growth

Advantages include:

  • lower integration risk

  • strong cultural alignment

  • gradual learning

  • protection of intellectual property

  • long-term sustainability

It also avoids the legal and financial complexity associated with acquisitions.

3.4 Limitations and Risks

However, organic growth has limitations:

  • slow speed of expansion

  • limited access to external knowledge

  • vulnerability to competitors

  • high internal development costs

In fast-moving industries such as technology, organic growth may be too slow to respond to market change (Johnson et al., 2017).

4. Mergers and Acquisitions (M&A)

4.1 Definition and Types

Mergers and acquisitions involve combining two or more organisations through ownership. A merger occurs when two firms agree to form a new entity, while an acquisition occurs when one firm purchases another (Cartwright and Cooper, 1993).

Types of M&A include:

  • horizontal (same industry)

  • vertical (supply chain integration)

  • conglomerate (different industries)

4.2 Strategic Rationale for M&A

Firms pursue M&A to:

  • gain market share

  • access new technologies

  • enter new markets

  • achieve economies of scale

  • eliminate competitors

M&A is often driven by the need for rapid growth and strategic repositioning.

4.3 Advantages of M&A

Advantages include:

  • speed of expansion

  • access to established capabilities

  • market power

  • diversification

  • synergy potential

For example, technology firms acquire startups to obtain innovation and talent.

4.4 Risks and Failures of M&A

Despite potential benefits, M&A has a high failure rate. Major risks include:

  • cultural conflict

  • poor integration

  • overvaluation

  • employee resistance

  • regulatory barriers

Research suggests that many acquisitions fail to deliver shareholder value (Grant, 2016).

4.5 Post-Merger Integration

Successful M&A depends on effective integration of:

  • systems

  • processes

  • cultures

  • leadership structures

Failure to manage integration leads to strategic collapse.

5. Strategic Alliances

5.1 Definition and Characteristics

Strategic alliances are cooperative agreements between independent firms that share resources and knowledge without full ownership integration (Yoshino and Rangan, 1995).

Examples include:

  • technology partnerships

  • supply chain collaborations

  • marketing alliances

  • research consortia

5.2 Strategic Logic of Alliances

Alliances allow firms to:

  • reduce risk

  • share costs

  • access complementary capabilities

  • enter new markets

  • accelerate innovation

They are common in industries with high R&D costs such as pharmaceuticals and technology.

5.3 Advantages of Strategic Alliances

Advantages include:

  • flexibility

  • lower investment risk

  • learning opportunities

  • faster market entry

  • access to partner expertise

Alliances are particularly attractive for SMEs and startups with limited resources.

5.4 Risks and Challenges

Risks include:

  • opportunism

  • knowledge leakage

  • trust issues

  • conflict of objectives

  • weak governance

Managing alliances requires strong relational and contractual governance structures.

6. Joint Ventures

6.1 Definition and Characteristics

Joint ventures involve creating a new entity jointly owned by two or more parent companies. They combine resources while maintaining separate identities (Kogut, 1988).

Joint ventures are often used in:

  • international expansion

  • high-risk projects

  • infrastructure and energy sectors

  • technology development

6.2 Strategic Rationale

Joint ventures allow firms to:

  • share risk

  • comply with local regulations

  • access local knowledge

  • combine complementary skills

They are common in emerging markets where foreign ownership restrictions exist.

6.3 Advantages

Advantages include:

  • shared investment

  • reduced risk

  • mutual learning

  • local legitimacy

6.4 Risks and Failures

Challenges include:

  • governance complexity

  • conflict between partners

  • strategic misalignment

  • cultural differences

Many joint ventures dissolve due to disagreements over control and strategy.

7. Strategic Methods in Startups and SMEs

Startups often rely on:

  • organic growth

  • alliances

  • partnerships

M&A is usually pursued later in growth stages (Blank and Dorf, 2012). SMEs use alliances and joint ventures to access resources without losing independence.

Lean Startup theory emphasises experimentation before large-scale commitment (Ries, 2011).

8. Digital Economy and Strategic Methods

Digital transformation has reshaped strategic methods:

  • acquisitions for technology and data

  • alliances for platform ecosystems

  • joint ventures for innovation labs

Tech firms often grow through acquisition rather than organic development to stay competitive (Teece et al., 1997).

9. Sustainability and Strategic Methods

Sustainability influences strategic method selection. Alliances and joint ventures are used to develop green technologies and circular supply chains (Porter and Kramer, 2011).

M&A can be used to acquire sustainable capabilities, while organic growth supports ethical culture development.

10. Integration with Strategy Tools

Strategic methods integrate with:

  • Ansoff Matrix (growth direction)

  • BCG Matrix (portfolio decisions)

  • Porter’s Generic Strategies

  • SWOT and VRIO

They operationalise strategic intent into action (Johnson et al., 2017).

11. Limitations and Criticisms

Criticisms include:

  • high failure rates of M&A

  • instability of alliances

  • complexity of joint ventures

  • slow pace of organic growth

Mintzberg (1994) argues that strategy often emerges rather than being planned.

12. Strategic Implications

Strategic methods determine:

  • speed of growth

  • risk exposure

  • organisational learning

  • stakeholder impact

  • long-term sustainability

Selecting the appropriate method requires alignment with capabilities, culture, and environment.

13. Conclusion

Strategic methods translate strategy into organisational action. Organic growth, mergers and acquisitions, strategic alliances, and joint ventures represent alternative paths to achieving strategic objectives.

This article has examined their theoretical foundations, advantages, and limitations. It has shown that no single method is universally superior; effectiveness depends on organisational context, industry dynamics, and strategic goals.

As part of the Strategic Choices section of the Strategy Tools series, strategic methods complement frameworks such as Ansoff Matrix and BCG Matrix by addressing how strategies are implemented. Their importance lies in their ability to shape organisational structure, learning, and long-term performance.

Executive Summary

Strategic methods describe how organisations implement their strategic choices in practice. The main strategic methods include organic growth, mergers and acquisitions (M&A), strategic alliances, and joint ventures. Each method involves different levels of risk, control, speed, and resource commitment.

This article examines the theoretical foundations and practical implications of strategic methods in contemporary organisations. Organic growth relies on internal resources and promotes long-term learning and cultural consistency but is often slow. Mergers and acquisitions provide rapid expansion and access to new capabilities but involve high financial and integration risks. Strategic alliances allow firms to share resources and reduce risk while maintaining independence, though they require strong trust and governance. Joint ventures create new shared entities and are commonly used in international and high-risk contexts.

The article also explores the relevance of strategic methods for startups and SMEs, which often prefer alliances and organic growth due to limited resources. Digital transformation and sustainability pressures are shown to influence the choice of strategic methods, with firms increasingly using partnerships and acquisitions to develop innovation and green technologies.

Despite their limitations and risks, strategic methods remain central to strategic implementation. When aligned with organisational capabilities and strategic objectives, they support growth, innovation, and competitive advantage.

Overall, strategic methods provide the operational link between strategy formulation and performance, shaping how organisations expand, collaborate, and adapt in dynamic business environments.

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