Alternative strategies
Alternative investing includes alternative strategies that use sophisticated investment techniques, such as leverage, taking short positions and using derivatives. In general, alternative strategies are structured to hold a wide range of traditional and non-traditional financial assets, but they are managed using non-conventional methods.
For instance, leverage is the strategy of using borrowed money to potentially increase the return on a particular investment. Shorting is the ability to profit when the value of a given security declines. Derivatives are financial instruments whose value is linked to the price of a given underlying security, such as a stock.
Alternative strategies are powerful investment tools that can help an investor target certain risk-return characteristics. The goal is to generate a different pattern of risk and return in comparison to traditional investments – potentially even making profits when traditional markets or securities are declining in value.
Examples of alternative strategies:
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FAQs
In general, alternative strategies are structured to hold a wide range of traditional and non-traditional financial assets, but they are managed using non-conventional methods. For instance, leverage is the strategy of using borrowed money to potentially increase the return on a particular investment.
What are the 11 alternative strategies? ›
Defined and exemplified in Table 5-4, alternative strategies that an enterprise could pursue can be categorized into 11 actions: forward integration, backward integration, horizontal integration, market penetration, market development, product development, related diversification, unrelated diversification, ...
What are strategic alternatives? ›
Strategic alternatives are blueprints that set the direction for the successful organization of resources and achievement of goals. Branding plays a crucial role in articulating strategic alternatives.
What do alternative approaches and strategies mean? ›
(ɔːltɜːʳnətɪv ) adjective [ADJECTIVE noun] B2. An alternative plan or offer is different from the one that you already have, and can be done or used instead.
What is the alternative strategy theory? ›
Alternative strategy theory emphasises the importance of measuring the costs and benefits of different types of social behaviour, and of being aware that different behavioural solutions to the same problem may be equally successful.
What are the 4 alternative growth strategies? ›
What are the four major growth strategies?
- market penetration.
- product development.
- market development.
- diversification.
Five strategic alternatives are open to companies pursuing geographic expansion: product-communication extension; product extension-communication adaptation; product adaptation-communication extension; product-communication adaptation; and product invention (innovation).
What are the three alternative strategies? ›
At any given point, a business basically has three strategic alternatives to consider – pursuing growth, restructuring to bring in more cash or selling the business – each has its own risks and rewards for the owner to consider.
What are the 5 strategic options? ›
Strategic Options Assessment: Five Strategies for Success
- Conduct an operations assessment. ...
- Assess market factors. ...
- Determine structural goals. ...
- Dual track transaction process considerations. ...
- Define exit path.
In general, alternative strategies are structured to hold a wide range of traditional and non-traditional financial assets, but they are managed using non-conventional methods. For instance, leverage is the strategy of using borrowed money to potentially increase the return on a particular investment.
Examples of alternative approach
An alternative approach would be selective antenatal testing on the basis of known exposures. In this paper a new alternative approach is presented. An alternative approach is to perform a weakly nonlinear analysis in the phase plane.
What is identifying alternative strategies? ›
In summary, identifying strategic alternatives requires a holistic approach that combines analytical tools, creativity, and a deep understanding of the business environment. By exploring diverse options, organizations can make informed choices that lead to sustainable growth and competitive advantage.
What are generic strategic alternatives? ›
Generic strategy refers to three alternative methods for a firm to position itself competitively within an industry: cost leadership, differentiation and focus. The concept of generic strategy is first defined by Michael Porter in his book Competitive Advantage (1985).
What is an example of a strategic alternative? ›
Examples of strategic alternatives for consideration include: Maintaining the status quo. Optimizing internal investment. Changes to capital structure.
How do you come up with strategic alternatives? ›
Choosing the best strategic alternative for a business involves a careful analysis of various options and considerations. Conducting SWOT analysis(Strength, weakness, opportunities,Threats) Assessing industries and market situations Financial planning scenario planning cultural fit creating benchmarks and many more.
What is a strategy that is better than any alternative strategy? ›
This is called a dominant strategy. This means that the payoff for this strategy is better than the payoff for any other strategy the player may choose. It is also a solution for the game.
What are the super six strategies? ›
Making Connections, Predicting, Questioning, Monitoring, Visualising and Summarising . . . better known as the 'Super Six'! The 'Super Six' are strategies which can be used to teach the skill of comprehension. Many of you may already incorporate these into your reading and listening/talking programmes.
