ABSTRACT
Growth is governed by a creative and dynamic interaction between a firm’s productive resources and its market opportunities. This chapter presents an analysis of the growth of the Hercules Powder Company. The history of this company illustrates the nature and significance of the areas of specialization of a firm—its technological and market bases—as well as some of the difficulties encountered when an attempt is made to move to new bases markedly different from the old. The original technological base of the Hercules firm was explosives and for the first few years of its existence it was kept busy with the expansion of this field. Nitrocellulose is one of the most important basic raw materials in the production of explosives. Successful development of nitrocellulose for nonexplosive uses provided for Hercules an extensive technological base as well as an important market area of specialization.
