Growth Strategies
Running a business is often likened to crossing an ocean: smooth sailing with some strong bursts of winds, followed by peaceful stillness. Business owners know that in order to get to their destination, they must focus on growth strategies, which are critical in their efforts to move ahead and produce desired outcomes. More importantly, growth strategies help businesses determine how they will achieve their desired growth rate, which is the rate at which the business’s revenue or market share is expected to increase.
Growth strategies differ from one business to another, as they depend on various factors, such as the product or service, the target market, and the current market conditions. Growth strategies usually focus on either maintaining or increasing a business’s current customer base, and implementing plans to attract new customers. The strategies can be divided into three broad categories: organic growth, acquisition growth and market-penetration growth.
Organic growth involves developing and launching new products and services, expanding into new markets, broadening the customer base, and developing relationships with current customers. Organic growth strategies often take time to show results, but when successful, can bring impressive rewards for businesses.
Acquisition growth involves the purchase of other existing businesses, as well as its customer base and services. This strategy is often seen in big businesses, such as Microsoft, who have purchased smaller companies in order to acquire their technology, customer base and products.
Finally, market-penetration growth is achieved by increasing the market share of an existing product or service, by offering new and attractive features, improving the overall quality, and increasing its visibility. Market-penetration growth can also be achieved by expanding the reach of promotions and discount offers.
Although growth strategies often require investments of time and money, they can be immensely rewarding. In addition to increased sales and revenue, businesses that implement growth strategies often experience improved customer retention, increased customer loyalty, better customer service, improved employee morale and greater overall productivity.
In summary, growth strategies are essential to achieving a positive business outlook and ultimate success. However, business owners should remember that growth strategies must be tailored to their particular business and market conditions, in order to ensure that the strategies are effective and bring about the desired outcomes.
