Pursuing three horizons of growth – three cases: Bombardier (Canada), Disney (US) and Hutchison Whampoa (China)
Abstract
Purpose
The article looks at how companies pursuing a three‐horizon growth strategy weathered the last economic downturn and what became of their growth initiatives.
Design/methodology/approach
The paper examines the financial performance and continued investment of three growing companies from 1996‐2004: Bombardier (Canada), Hutchison Whampoa (Hong Kong/China) and Disney (US).
Findings
The Bombardier, Disney and Hutchison Whampoa cases teach a powerful lesson about the importance of using investment in growth to manage uncertainty and limit downside risk.
Research limitations/implications
While the focus of this article is on three companies only, the financial performances of a dozen other growing firms are examined over the same period for purposes of comparison.
Practical implications
Following the last downturn, companies sought to preserve the core and outsource non‐critical functions to reduce the cost of business. Some chose to sideline growth initiatives during this period. This article analyzes the outcomes for three companies that continued to invest in growth during and after this period.
Originality/value
This article addresses a series of questions. Is a three‐horizon growth strategy sustainable in a downturn? Have companies that pursued a three‐horizon strategy actually grown? Do they continue to finance the growth of horizon two and horizon three businesses? Have any viable options matured?
Keywords
Citation
Matheson Connell, C. (2007), "Pursuing three horizons of growth – three cases: Bombardier (Canada), Disney (US) and Hutchison Whampoa (China)", Business Strategy Series, Vol. 8 No. 1, pp. 14-25. https://doi.org/10.1108/17515630710686842
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited