Growth strategy allows enterprises to expand business. Moreover, growth can be attained by practices like invest in new customer acquisition, adding new locations, or expanding a product line. A company’s industry & target market influences which growth strategies it will choose. Growth strategy include the key aspects such as
- Adding new locations
- Capitalizing in client acquisition
- Permitting opportunities
- Invention & expansions
- Selling goods online across manifold platforms
Successful growth strategies are the product of marketing, leadership, engineering, design, and product management. Whether team comprises of two co-founders or a skyscraper with large number of employees.
A growth strategy is a plan of action which allows attaining a high level of market share than the current one. Other than this certainty, a growth strategy is not necessarily motivated on short-term earnings—growth strategies can be long-term, too. Companies of each size may face challenges which suppress growth. A company might have a great service or product but no business growth strategy to assistance it articulate, define and communicate where it is going.
A growth strategy is different from an annual plan and can be challenging to develop the unfamiliar with what the way you need and how to create it. Below we examine how to develop a business growth strategy that is dynamic & effective.
Market Expansion or Development
A market expansion growth strategy also called market development that entails selling current products in a new market. There are various reasons why a company may reflect a market expansion strategy. First, the competition may be such that there is no area for development within the current market. A small company may use a market expansion strategy if it finds new uses for its product. For example, a small soap distributer that trades to retail stores may discover that factory workers also use its product.
Market Penetration Strategy
One growth strategy in industry is market penetration. A small company uses this market penetration strategy when it decides to market existing products within the same market it has been consuming. The only way to grow using present products & markets is to increase market share, according to small business experts.
Product Expansion Strategy
A small company may also enlarge its product line or add new features to rise its sales & profits. When small companies employ a product expansion strategy than it is recognized as product development, they continue selling within the existing market. A product expansion growth strategy frequently works well when technology starts to change. A small company may also be forced to add novel products as older ones become outmoded.
Growth through Diversification
Growth strategies in business also comprise diversification, where a small company will sell novel products to new markets. This form of strategy can be very risky. A small company will need to plan prudently when using a diversification growth strategy. Marketing research is important because a company will need to determine if clients in the new market will potentially like the new products.
Acquisition of Other Companies
Growth strategies in business also include an acquisition. In acquisition, an enterprise or a company purchases another company to develop its operations. A small company may use this sort of strategy to expand its product line and enter new markets. This growth strategy can be risky, but not as risky as a diversification strategy.
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Ankur Gupta, Head Marketing & Communications