Growth Strategy - Strategy for Executives (2022)

What is a Growth Strategy?

A growth strategy is a collection of business initiatives that seek the maximization of a company’s value within a period.

Despite what many people believe, a comprehensive growth strategy is not only about getting more clients and selling more stuff. I mean, getting clients is super important but there’s much more in a strategic growth plan than just expansions and market development.

If what you’re looking for is learning about different ways to target more clients and expanding your existing businesses, then I recommend you download a free copy of my book AI-Powered Lead Generation, where I explain how established businesses and startups leverage artificial intelligence and other technologies in their sales outreach.

But if you are looking for a comprehensive strategic growth plan, then you’re on the right page, so read on.

As we explained in our business strategy principles, the first order of business for any executive is having a core business under control, which means ensuring that the business’s products and services occupy a market position that is both profitable and defendable.

Once you achieve that, you can then shift your attention to growth, and start thinking about different ways to maximize your business’ value within the foreseeable future.

In an ideal world, we’d expect executives to only go after growth initiatives that are beneficial to their organization, but in reality, we’ve all seen how pressure from demanding shareholders and investors, and misguided incentives, can lead a company to sometimes pursue growth at all costs even if doing so destroys value over the long term.

In general, we say that a growth strategy is comprehensive if a combination of the following conditions is met:

  1. It increases the company’s bottom line over time,
  2. It produces an attractive return on investment (ROI),
  3. It leverages the company’s value chain,
  4. It builds a new critical capability, or
  5. It improves the business’s strategic positioning.

Not all growth is created equal, and sometimes more sales don’t necessarily means that you are growing profitably. That’s what I mean by Strategic Growth.

For that reason, you must always pay careful attention to “the costs” of your growth effort (both financial and non-financial) and to how sustainable you expect these efforts to be over the long term.

In this article, we explore different ways in which you cangrow any business and provide some ideas to help you create your growth plan. Theseare some of the things that we’ll be covering:

  1. Business Growth Strategies
  2. Categorizing Growth
  3. Creating your growth plan
  4. Creating your 5-year growth template
  5. Breaking down your company’s growth
  6. Adopting A Portfolio Approach to Strategic Growth
  7. Examples of a growth strategy?
  8. Inorganic Growth Strategy
  9. The Best Strategy Books
  10. References

We have included some charts, links, and other references to help you improve your understanding of what a good growth strategy is. We have also created a mindmap with all the growth options we cover so that you can download it and make notes as you go through this article.

Growth Strategy - Strategy for Executives (1)

This mindmap is also a visual representation of thestrategic choices that as a business executive you have to make when developinga new growth strategy.

The content of this article is based on our best-selling book Strategy for Executives™ which you can now download free here.

Now let’s get to business.

Business Growth Strategies

When most market analysts talk about growth, they are usually referring to an increase in revenues (aka the top line) during a given period, usually a quarter or a year.

But when we talk about growth here, we are exclusively referring to an increase in Net Earnings (also known as the bottom line) or “Free Cash Flow” (usually just referred to as FCF), concepts that we review in more detail in our Financial Analysis section.

Through our extensive research, we found seven different ways to generate growth in any organization:

  1. Market Penetration: Selling more of your existing products to your current consumers or targeting new consumer “segments” within the same markets.
  2. Market Development: Selling your existing products to new markets, or into new markets internationally.
  3. Product Improvement: Improving your products and services that serve existing customers (to reduce your churn rate, more on that later).
  4. Product Development: Creating new products and services to target existing customers or to enter new markets (which would qualify as some type of diversification move).
  5. Revenue Optimization: Increasing revenues through the implementation of alternative pricing options or new business models for your existing products.
  6. Cost Optimization: Reducing costs through the optimization of the business’s cost centers, by streamlining operations or eliminating inefficient uses of cash.
  7. Inorganic Growth: Leveraging other companies’ assets through synergistic mergers, acquisitions or strategic alliances.

Your job as a business executive is to explore how this list relates to your organization and make educated decisions about which paths you believe would deliver the most impact to your bottom line.

Growth Strategy - Strategy for Executives (2)

The collection of the paths you handpick is the core of your growth strategy, which along with your strategic positioning plan and your execution system, give you all you need to succeed in the creation and implementation of your organization’s strategy.

In the next sections, we explore different tools and ideas to help you manage your growth strategy.

Back to Top

Categorizing Your Growth Strategy Plan

While a growth strategy can be generally described as a group of business initiatives aimed at increasing a company’s bottom line, I prefer to talk in terms of an executive plan for the strategic growth of the organization, which contains the initiatives that the executive team has handpicked to maximize value within the foreseeable future.

(Video) Internal Growth v External Growth | Business Strategy

Not all growth paths will have the same impact on abusiness, and for that reason, you must narrow down the universe of initiativesthey could go after to the handfulthat would deliver the most impact within a given period, with the least amountof effort and resources.

That’s why your plan for growth must be strategic in nature,because in the end, no company has unlimited resources or management bandwidthto pursue all the opportunities that are presented to it, so you must carefullyselect the things you will spend attention and resources on.

Consulting firm McKinsey & Company found that organizationsthat distribute growth efforts across three buckets Expansions, Creations(new businesses) and Optimizationsare best positioned to outperform market peers over time.

That translates into a growth plan that seeks to do more of what’s working, get better at it, and find new ways to create value, which results in a synergistic and balanced approach to growth.

Growth Strategy - Strategy for Executives (3)

I have also found this categorization to be useful inexplaining the sources of growth in executive meetings and for making betterresource allocation decisions.

But beyond the categorization of growth opportunities, amore fundamental problem you often face is the actual selection of the growthinitiatives that you should focus your strengths on.

That’s what we cover in the next section.

Back to Top

Creating a Strategic Growth Plan

The best way to start a growth plan is by estimating thegrowth “gap” that we need to fill in with new businesses.

For example, let’s say that you are planning your strategy for the next five years and that your goal is to grow 15 percent a year. If your operating businesses are expected to produce $100 million this year in net earnings, and you expect them to grow at a rate of 9 percent per year, then you can easily calculate the type of earnings that your new businesses will need to create every year.

YearCurrent12345
Core Business Earnings100109118.8129.5141.2153.9
Target Earnings (15%)115132.3152.1174.9201.1
Growth Gap (difference)613.422.633.747.3

You can get a copy of the spreadsheet with the calculations here.

Having an indicative number for the earnings gap can helpyou understand better the type of growth initiatives that you have to go after.

For instance, in the case above you’d then know that the growth strategy initiatives you pick should be such that they can deliver $47 million in net earnings by the end of year five, which can help you prioritize and facilitate their selection.

A good way to brainstorm initiatives that could be pursuedis to go through each of the growth paths we mentioned earlier, asking simplequestions like:

  • Could you originate and develop strategic growth opportunities that would be both profitable and defendable following this particular path?
  • Are there other incumbents doing it? If so, how?
  • Which capabilities in your value chain could you leverage if you decided to pursue this approach? If none, how could you then succeed in that market? Pioneer advantage? Through partnerships, maybe?
  • Would this path create synergies with your other business units?
  • How significant could this growth path become for you in terms of potential net earnings? What would be the expected returns?

The ideas that show the most potential can then be furtherdeveloped to get a better sense of the type of profits they could create, thelevel of investment needed, partnerships and capabilities to be built, and soon.

There’s no perfect approach to selecting strategic growth opportunities since the selection must comply with a variety of company preferences (including returns) and meet the strategic goals of the moment.

Our recommendation is to select a handful of the most important investment parameters for your company (e.g. net earnings, investment required, returns, inventory preferences or just for strategic reasons), then “fill the growth gap” starting with the initiatives that promise to perform best at those parameters until the gap has been closed.

Growth Strategy - Strategy for Executives (4)

In an ideal situation, you would end up with a balanced growthstrategy across all three of McKinsey’s buckets (expansions, creations, andoptimizations), but in reality, you will most likely end up with a strong biastowards a particular category, based on the prevailing strategic goals of themoment, which is ok in our experience.

The next step is to work on your 5-year template which is the subject of the next section.

Back to Top

Creating a 5-year Strategic Growth Template

When it comes to managingdifferent business units, you can (and probably should) adopt a portfolio mentality, where you seek tomaximize the value that the portfolio creates as a whole over some time,usually five years.

That provides you with a 5-year growth template, that will help you to better balance efforts across the different business units and make better capital allocation decisions.

Growth Strategy - Strategy for Executives (5)

Putting all your eggs in a single basket is always a risk,and while it is true that many companies have won big betting on new productsand technologies, there’s a difference between betting “big” on a growthinitiative and betting “all.”

That’s why, as a company, it makes sense to have a portfolio of your growth initiativecutting across multiple markets, business units or products which could belaunched at different times in the future.

(Video) How to Develop a Growth Strategy: Choosing One That Works (Growth Strategy Part 3/4)

By creating such a map, you can easily keep track of all of the opportunities in your pipeline, better balancing resources across each of them.

Back to Top

Breaking Down your Company’s Growth Strategy

Unless you can say how much each effort is contributing to yourcompany’s growth, you won’t be able to get the maximum out of them. You know,when Peter Drucker said that “What getsmeasured gets managed,” he may well have been talking about growth.

If you understand how each business unit, product oroptimization experiment is contributing to your company’s growth, you candouble down on the things that are working, pay attention to things that arenot, and find opportunities for improvements.

A great tool to help break down and track growth efforts is the Sources of Revenue Statement, or just SRS, created by Michael Treacy and Jim Sims which allows you to create a nice waterfall showing how your revenues break down for a particular period, which is very useful to gauge growth efforts and reallocate resources.

Growth Strategy - Strategy for Executives (6)

We describe this tool in great detail in the book where we provide a step by step process to create the waterfall.

You can make a similar breakdown for profits or net earnings if you have enough information to allocate costs and prorate some accounts, but this statement of sales can give us a good starting point to understand where our profits are coming from.

Back to Top

Adopting a Portfolio Approach in your Growth Strategy

When it comes to managing different business units, you can (and probably should) adopt a portfolio mentality, where you seek to maximize the strategic growth that the portfolio creates as a whole over a period of time.

That will help you to better balance efforts across the different business units and make better capital allocation decisions resulting in a better growth strategy.

You can do this by placing business units in a four by four matrix based on their competitiveness and the strategic growth potential of their markets.

Growth Strategy - Strategy for Executives (7)

Those familiar with classic growth strategy tools will note that this is an updated take on the Growth-Share Matrix introduced by the Boston Consulting Group (BCG) in its early days, where we are using competitiveness and market potential as proxies for the original dimensions.

Following BCG’s naming convention for each of the quadrants,we can define each business unit as one of these:

  1. Cash cows: Businesses with astrong market position in a low growth market. These units produce ahealthy cash flow that can be used to fund other businesses.
  2. Stars: Units with strongpositioning in high growth markets. These businesses usually need lots ofcash to retain their share of the market and will eventually become cashcows when the market reaches its maturity. Because of their strongposition, they yield high returns on the company’s money, so they must bean investment priority.
  3. Pets: These are business unitswith a weak position in a low-growth market. Pets usually yield a lowreturn on the company’s money, the reason why many experts call them “cashtraps”, so by Jack Welch’s rules these business units should be eithersold or closed.
  4. Question marks: These arebusinesses with a weak position in a strong market. They need cashinjections to fund their growth, but that investment won’t yield highreturns until the business achieves a stronger position. By Jack Welch’srules they should be fixed (e.g. by funding their growth) or sold.

To select where each business fits in the matrix you canassess its competitiveness based on its ability to defend a profitable positionin the foreseeable future, something that’s usually related to factors likemargins, size, recent growth, market share, profitability, technologicalposition, intellectual property, reputation, image, brand strength and people.

One idea behind the growth matrix classification is that each of the four quadrants have a different investment profile in terms of the returns they produce.

For example, cash cows behave a lot like bonds, an investment instrument that gives you a steady cash flow every year, and that maintains its value over time. If you decide to sell it, you get your original investment back.

Stars behave more like a savings account, where you put money in and this compounds every year. You don’t get an annual cash flow but at the end you get your investment plus a return.

Pets, on the other hand, behave much like a mortgage where as the holder (in this case as the owner of that business) you get a return on your investment and you get your money back, but at the end of the period it is worth nothing.

The power of positioning businesses in this matrix is inhelping you see how the different units can help each other to produce themaximum growth as a whole.

For example, the cash flow coming from cash cows is bestused to finance the growth of stars and question marks. The question marks thatare not selected for growth money, then, must be sold to other companies forwhich they could create some synergies.

The question marks quadrant is also the best candidate for mergers and acquisitions. Since those units are performing poorly in a market that shows strong potential, a quick way to gain the strengths you need to make them stars is through strategic M&A or JVs.

Pets are units that are performing poorly in a weak market, so unless they are strategic in nature (e.g. being used to develop a key technology) they should be closed or divested. Alternatively, some pets could be repositioned to target a different market where they could perform better.

Growth Strategy Examples

Let’s quickly go through a few examples of the differentgrowth paths we introduced before, to give you a better perspective on each one.

Increasing market penetration

In many ways, trying to increase market penetration is a bitof a win-lose game where every new customer you make is a customer loss foranother company that’s targeting the same market. Put simply, increasing your marketshare implies serving customers that would otherwise be served by a competitor(aka stealing other companies’ customers).

For example, in the cloud computing industry, Amazon WebServices (AWS, a company owned by Amazon.com) has retained most of the market formany years, but Microsoft’s Azure service has been growing at a fast pace atthe expense of AWS’ market share.

Targeting new customer segments

Along the same lines, you can also expand your core business by making your products more appealing to different segments within the same market.

(Video) McKinsey's Growth Categorization - Growth Strategy

Growth Strategy - Strategy for Executives (8)

For example, yogurt maker Chobani has introduced differentpresentations for its yogurt offers that go well beyond its popularfruit-in-the-bottom presentation. It now features Flip®, a yogurt-based snackthat students and office workers can grab “on the go,” and a yogurtdrink that has amassed avid fans among sports enthusiasts who consume it as apost-workout drink.

Entering new markets

Consider the case of a motor oil company that makes anddistributes lubricants for the automobile industry. To serve its markets thecompany has distribution deals with auto repair shops, department stores, andgas stations since those are the places where their target customers, i.e., carowners, usually buy motor oil.

In an expansion effort, the company could decide to create anew brand of oil targeting trucks and the heavy machinery industry. Althoughthe underlying product is relatively the same, its distribution channels,customers, pricing policies, presentation, and even its business model willhave to be different because the company will be now attacking a different market.

Selling new products to existing customers

In a way, when you try to sell new products to existingcustomers, you are using your brand as a kind of “distribution channel” toreach those customers and make them buy the new thing.

For example, when ride-sharing app Uber introduced its fooddelivery service Uber Eats, it leveraged its vast user base to promote theservice and millions of their existing customers immediately downloaded the newapp within a few hours. Any other food delivery service trying to competeagainst Uber Eats will be at a big disadvantage if it has to build its audiencefrom scratch.

Creating complementary products

A potentially great way to increase sales in operating businesses is through the development of complementary solutions that help increase demand for your products. Think about Nestlé’s success with its Nespresso machines which multiplied sales of its coffee products and helped the company leapfrog in the very competitive coffee space.

Growth Strategy - Strategy for Executives (9)

Nespresso turned out to be a great “vehicle” to deliverNestlé’s coffee products, making it a perfect match for the company, remindingus a little of the success of Gillette’s famous razor and blade business modelthat we mentioned earlier.

Productization of thevalue chain

Another area that’s usually ignored, but that could offerimportant growth opportunities, is what we call the productization of the company’s value chain. In other words, takingsomething that the company is very good at and offering it to third parties asa standalone product or service.

For example, back to Amazon Web Services (AWS), the company allowscompanies around the world to use Amazon’s vast array of servers and cloudcomputing tools for their own purposes. AWS leverages a technology platformthat Amazon already needed anyway to run its own operations and makes itavailable for third parties to use for a fee, giving Amazon the opportunity toscale this operation to levels it would never have reached on its own.

Shifting focus from customers to buyers or vice versa

You may find space for growth by exploring the relationshipsbetween buyers and users that exist in your markets. In the healthcare space,for example, some companies have stopped promoting their products to doctors,which most providers do, and instead refocused their efforts to reach patientsdirectly through targeted advertising and promotional efforts.

If the people who buy a product or service are different from those who use it, you should explore whether switching from one to the other can give you better results.

Back to Top

Inorganic Growth Strategy

I have found that most definitions of inorganic growth (alsoknown as non-organic growth) try to limitit to mergers and acquisitions (M&A), however they leave out twoalternatives to M&A that I believe should be evaluated before considering an acquisition: strategic alliances andcorporate investment.

To make sure we are not limiting ourselves too much, let’s define inorganic growth as any growth strategy that results from controlling another company’s resources, rather than developing those resources ourselves.

In most cases, you will go the inorganic route as a way to produce rapid and strategic results, catch up in a market where you were left behind, access key assets and intellectual property, or to build synergies to put your company in a favorable position against competitors.

This means that inorganic business growth are almost always of a strategic nature and involve certain levels of risks, especially M&A, but those risks can be mitigated by testing the waters first through one of the alternatives.

Let’s briefly review each of these alternatives beforediving into M&A.

Strategic growth alliances

At its most basic level, a strategic alliance is a collaboration agreement between at least two companies to pursue a common set of strategic growth goals and is usually a cost-effective alternative to an acquisition or a merger.

A common case of a strategic alliance is two firms forming apartnership to tackle a particular market segment with a combined offer that incorporatescomplementary capabilities of each partner.

This is what car manufacturer Ford and clothing retailerEddie Bauer did when they joined forces to create the widely successful FordExplorer Eddie Bauer Edition, which featured premium leather seats and otherluxury perks in an effort to compete with Japanese companies in the luxury SUVmarket.

One reason to consider a strategic alliance instead of a full-blown merger is that an alliance can achieve most of the same growth strategy goals without the commitment and complexity of the real thing, making it a good alternative to see how the companies work together before making bigger commitments.

The obvious downside of a strategic alliance is that we haveto share the profits that the collaboration produces, and the fact thatmanaging the combined effort as two separate companies may turn out to be more difficult.

But in the cases that work, a strategic alliance is a greatalternative to M&A and in some cases may be the best way to test one BEFOREmaking an irreversible commitment.

A particular form of strategic alliance is the Joint Venture (which is normally referred to simply as a JV), where two or more companies co-invest in a new entity to undertake a new business or tackle a market together.

Unlike conventional strategic alliances, a JV entails the creation of a separate entity with its own governance and organizational structure to manage its operation.

(Video) Horizontal and Vertical Integration (Business Growth Strategy)

A JV can be executed between private companies only or itcan exist between government and private entities, an arrangement that’susually referred to as a Public-Private-Partnershipor PPP. These are very popular in developing countries to promote privateparticipation in public projects.

Strategic alliances work best when the capabilities of the companies are complementary in nature, and not competitive with respect to each other. For example, a company that provides industrial equipment could partner up with an engineering firm that provides design and construction services.

In that way the partnership could offer a bundled solution including all the equipment and services needed for a project under a single roof.

Just as you’d do for a merger or an acquisition, you must do extensive research and due diligence on the potential partner to make sure their growth strategy goals for the partnership align with yours, and that the final agreement will be manageable.

Corporate investment

Another way to test the strategic growth waters without getting too wet is by investing in companies that operate in a space that’s attractive for us. This is somewhat popular in large corporations and is a judicious step prior to a full acquisition.

These investments can be done by directly acquiring aminority piece of the target company, or by allocating money in commoninvestment funds (e.g. private equity funds) which find and screen companiesoperating in a particular space.

Through the investment you gain insights into that industry andhow that particular company operates, which is a great way to learn more abouta company before pursuing an acquisition.

A new trend that’s becoming popular for making directinvestments in early stage companies is by creating a Corporate Venture Capital (CVC) arm inside your company that findsand screens potential targets in need of seed, growth or expansion capital.

Through a CVC program, you create a fund to invest instartups in the form of equity. With this, your company becomes a shareholderin the entrepreneurial company as a way to keep a close watch on itsdevelopments and progress.

A CVC program is an in-house effort that allows you to seek(and be pitched by) startup companies with relevant technologies or businessmodels in your business space.

It is startups, not large corporations, that usuallyredefine industries and change the ways of doing business. Our corporations areusually slow, bureaucratic and careful, while startups are agile, creative andfearless.

By investing in startups, you can tap into that stream of creativity and energy and extend your innovation engines.

If well structured, a CVC plan should be a win-win for both sides: the startup gets access to funds and markets, while the corporation gets to expand its product portfolio with cutting-edge developments without the risks and costs of an in-house innovation effort.

The Best Strategic Growth Books

The content of this article has been extracted from Strategy for Executives, a book that provides a fundamental, but practical, framework to understand and create a good strategy from scratch, applicable to the dynamic conditions that modern executives face in pretty much every market today.

There are many excellent business strategy books that cover growth extensively, including “High Growth Handbook” by Elad Gil, “Dual Transformation” by Scott Anthony, Clark Gilbert, and Mark Johnson, and “Growth IQ” by Tiffani Bova, but why go through all these different frameworks and ideas, some of them outdated, when you can get a unified map to strategy that incorporates all of them in a single framework?

Strategy for Executives, which is now free to download here, is based on extensive multi-year research, where we broke down the most popular strategy frameworks of the last 40 years, extracted their core ideas, and tied them all together into a single didactical and self-contained body of knowledge.

The research was led by Sun Wu, a seasoned Fortune 500 executive with more than 15 years of real-life experience, complemented by a thorough revision of more than 300 books and research papers, and over 500 hours of videos, interviews and formal training.

The result is a combination of fundamental concepts and a concise map to the strategic choices that modern executives have to make to thrive in today’s highly competitive markets.

Every concept in the book is explained from scratch so that, plain and simple, this is the only strategy book that you and your teams will ever need.

Author: Sun Wu

References

Wu, Sun. Strategy for Executives, this book can now be downloaded for free here.

Ahuja, Kabir; Hilton Segel, Liz; Perrey, Jesko. The roots of organic growth. McKinsey Quarterly. August 2017. URL: https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-roots-of-organic-growth

Ahuja, Kabir; Hilton Segel, Liz; Perrey, Jesko. Invest, Create, Perform: Mastering the three dimensions of growth in the digital age. McKinsey article. March 2017. URL: http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/invest-create-perform

Anthony, Scott D.; Johnson,Mark W.; Sinfield, Joseph V.; Altman, Elizabeth J. The Innovator’s Guide to Growth: Putting Disruptive Innovation to Work.Harvard Business Review Press. Kindle Edition.

Treacy, Michael; Sims,Jim. Take Command of Your Growth.Harvard Business Review OnPoint, Fall 2008.

(Video) Scaling Your Company: Choosing a Growth Strategy

FAQs

What are the 4 growth strategies? ›

There are four basic growth strategies you can employ to expand your business: market penetration, product development, market expansion and diversification.

What are the three major growth strategies? ›

Types of Growth Strategies – 3 Important Types: Intensive Growth Strategies, Integrative Growth Strategies and Diversification Growth Strategies (With Examples)

What are the 5 corporate level strategies? ›

Types of Corporate Level Strategy – 5 Main Strategies: Stability Strategy, Expansion Strategy, Retrenchment Strategy, Defensive Strategy, Growth Strategy and a Few Others.

What makes a good growth strategy? ›

A growth strategy allows companies to expand their business. Growth can be achieved by practices like adding new locations, investing in customer acquisition, or expanding a product line. A company's industry and target market influence which growth strategies it will choose.

What are the 4 types of business strategies? ›

What are the Types of Business Strategy?
  • Organizational (Corporate) Strategy.
  • Business (Competitive) Strategy.
  • Functional Strategy.
  • Operating Strategy.
Apr 7, 2022

What are internal growth strategies? ›

Internal growth strategy refers to the growth within the organisation by using internal resources. Internal growth strategy focus on developing new products, increasing efficiency, hiring the right people, better marketing etc.

What is the best growth strategy in business? ›

1. Market penetration: Increase your market share. Building more market share, also known as market penetration, is one of the best business growth strategies for small businesses. Basically, the goal is to sell more of your existing products or to successfully promote a new product.

What are corporate level strategies? ›

A corporate-level strategy is an action taken to gain a competitive advantage through the selection and management of a mix of businesses competing in several industries or product markets.

What are the 3 business level strategies? ›

The three levels are corporate level strategy, business level strategy, and functional strategy. These different levels of strategy enable business leaders to set business goals from the highest corporate level to the bottom functional level.

What is a professional growth plan? ›

Professional growth plans (PGPs) are job-embedded, self-directed professional development. With a PGP, teachers, administrators, paraeducators, and ESAs set their own goals, align them to certification standards, design an action plan, and collect evidence documenting growth towards achieving their goals.

What should a growth plan include? ›

You should include these elements in your growth plan:
  • A description of expansion opportunities.
  • Financial goals broken down by quarter and year.
  • A marketing plan of how you will achieve growth.
  • A financial plan to determine what capital is accessible during growth.

What is a growth framework? ›

Make it about growth: The growth framework you define is a tool that empowers your team to have fair discussions around compensation that are driven by growth. Communicating this effectively is crucial.

What are the 3 types of strategies in strategic management? ›

What Are the Three Types of Strategy- And How You Can Apply Them!
  • Business strategy.
  • Operational strategy.
  • Transformational strategy.

What is the another name of growth strategy? ›

A market expansion growth strategy, often called market development, entails selling current products in a new market. There several reasons why a company may consider a market expansion strategy. First, the competition may be such that there is no room for growth within the current market.

What is growth strategy with example? ›

A growth strategy is a working plan to increase revenue and expand a business. A company can grow through a variety of methods, depending on its competition and financial position.

What are effective substitute for internal growth strategy? ›

External growth (also known as inorganic growth) refers to growth of a company that results from using external resources and capabilities rather than from internal business activities. External growth is an alternative to internal (organic) growth.

What are external growth strategies? ›

External growth (or inorganic growth) strategies are about increasing output or business reach with the aid of resources and capabilities that are not internally developed by the company itself. Rather, these resources are obtained through the merger with/acquisition of or partnership with other companies.

What are the 8 ways to grow your business? ›

8 ways to grow your business
  • Know your customers. It is important to have a thorough knowledge of who your customers are. ...
  • Give excellent customer service. ...
  • Grow loyalty. ...
  • Network. ...
  • Keep on learning. ...
  • Host events. ...
  • Use social media. ...
  • Measure your approaches.
Sep 17, 2019

What are three business growth areas? ›

There's turnover, there's profitability and there's market value. These are the three main areas of business growth to consider – these are very different goals and will require significantly different experience and expertise to ensure the goals are met.

What is Tesla's corporate level strategy? ›

The strategy of Tesla is to enter at the high end of the market, where customers are prepared to pay a premium, and then drive down market as fast as possible to higher unit volume and lower prices with each successive model.

What is growth strategies with examples? ›

A growth strategy is a working plan to increase revenue and expand a business. A company can grow through a variety of methods, depending on its competition and financial position.

What are the types of growth? ›

There are three (3) general types of growth that are considered in biology.
...
Types of Growth
  • Growth in cells.
  • Growth in plants.
  • Growth in animals.
Jun 16, 2022

What is the best growth strategy in business? ›

1. Market penetration: Increase your market share. Building more market share, also known as market penetration, is one of the best business growth strategies for small businesses. Basically, the goal is to sell more of your existing products or to successfully promote a new product.

Which growth strategy is the toughest? ›

Diversification. This is the hardest and potentially the most risky, it involves developing new products to sell to new markets.

What are the 4 types of business strategies? ›

What are the Types of Business Strategy?
  • Organizational (Corporate) Strategy.
  • Business (Competitive) Strategy.
  • Functional Strategy.
  • Operating Strategy.
Apr 7, 2022

What are internal growth strategies? ›

Internal growth strategy refers to the growth within the organisation by using internal resources. Internal growth strategy focus on developing new products, increasing efficiency, hiring the right people, better marketing etc.

What are the 4 stages of growth and development? ›

Introduction
  • Infancy (neonate and up to one year age)
  • Toddler ( one to five years of age)
  • Childhood (three to eleven years old) - early childhood is from three to eight years old, and middle childhood is from nine to eleven years old.
  • Adolescence or teenage (from 12 to 18 years old)
  • Adulthood.
Jan 14, 2022

What are the three growth curves? ›

Growth can be measured as linear, logarithmic, and exponential curve.

What is growth pattern? ›

Most healthy infants and children grow in a predictable fashion, following a typical pattern of progression in weight, length, and head circumference. Normal human growth is pulsatile; periods of rapid growth ("growth spurts") are separated by periods of no measurable growth [7-9].

What are the 8 ways to grow your business? ›

8 ways to grow your business
  • Know your customers. It is important to have a thorough knowledge of who your customers are. ...
  • Give excellent customer service. ...
  • Grow loyalty. ...
  • Network. ...
  • Keep on learning. ...
  • Host events. ...
  • Use social media. ...
  • Measure your approaches.
Sep 17, 2019

What are growth initiatives? ›

Growth platforms are specific initiatives selected by a business organization to increase their revenue and earnings growth. There are two types of growth platforms: strategic or tactical. Strategic growth platforms usually take from 3 to 6 years to implement and give the desired results being long term initiatives.

When should you adopt a growth strategy? ›

The strategy for growth should be chosen based on the company's product or service, their market, the ambitions of the shareholders and their appetite for risk.

How do you drive category growth? ›

Contents
  1. Step 1: Know Your Customer in Retail Marketing 1. Step 1: Know Your Customer in Retail Marketing. ...
  2. Step 2: Define Your Business Value. Step 2: Define Your Business Value. ...
  3. Step 3: Map the Consumer Journey in an Omnichannel World. ...
  4. Step 4: Choose Tactics to Influence Your Customers to Purchase.

What does a growth strategist do? ›

Responsibilities: Identify, prioritize, and advance opportunities that drive growth of lead acquisition and retention. Provide strategic guidance for Growth Product and Performance Marketing, help quantify and prioritize strategic directions and initiatives across all channels and stages of the user journey.

A growth strategy is a set of business initiatives to maximize a company's value within a particular time window. See how to create one for your company.

As we explained in our business strategy principles , the first order of business for any executive is having a core business under control, which means ensuring that the business’s products and services occupy a market position that is both profitable and defendable.. Business Growth Strategies Categorizing Growth Creating your growth plan Creating your 5-year growth template Breaking down your company’s growth Adopting A Portfolio Approach to Strategic Growth Examples of a growth strategy?. The different paths to business growthThe collection of the paths you handpick is the core of your growth strategy, which along with your strategic positioning plan and your execution system , give you all you need to succeed in the creation and implementation of your organization’s strategy.. While a growth strategy can be generally described as a group of business initiatives aimed at increasing a company’s bottom line, I prefer to talk in terms of an executive plan for the strategic growth of the organization, which contains the initiatives that the executive team has handpicked to maximize value within the foreseeable future.. That’s why, as a company, it makes sense to have a portfolio of your growth initiative. cutting across multiple markets, business units or products which could be. launched at different times in the future.. A great tool to help break down and track growth efforts is the Sources of Revenue Statement , or just SRS , created by Michael Treacy and Jim Sims which allows you to create a nice waterfall showing how your revenues break down for a particular period, which is very useful to gauge growth efforts and reallocate resources.. To make sure we are not limiting ourselves too much, let’s define inorganic growth as any growth strategy that results from controlling another company’s resources, rather than developing those resources ourselves.. One reason to consider a strategic alliance instead of a full-blown merger is that an alliance can achieve most of the same growth strategy goals without the commitment and complexity of the real thing, making it a good alternative to see how the companies work together before making bigger commitments.. Business strategy and how it relates to growthThere are many excellent business strategy books that cover growth extensively, including “ High Growth Handbook” by Elad Gil, “ Dual Transformation” by Scott Anthony, Clark Gilbert, and Mark Johnson, and “ Growth IQ ” by Tiffani Bova, but why go through all these different frameworks and ideas, some of them outdated, when you can get a unified map to strategy that incorporates all of them in a single framework?

Firms can adopt a number of strategic principles to achieve sustained, profitable growth.

Only 13% of companies in our database equalled or surpassed a reasonable set of growth targets (5.5% real annual revenue and income growth) and created shareholder value over the 10-year period.. As Figure 4 demonstrates, companies that grew revenue and profits together grew shareholder value on average more than three times faster than companies that grew only revenue or profits.. The best stories of sustained and profitable growth almost always come from a company focusing on and growing its "profitable core" and then driving its greatest competitive advantage into adjacent areas around the core.. A further probe into the most successful growth strategies reveals two key elements: the first is a strong, or even dominant, competitive position in a core business or segment that has been managed aggressively to gain consistent market share, year in and year out, against key competitors.. But in the ensuing years, its management concluded that the company's basic rental business lacked the potential for growth and, accordingly, moved Agency into other lines of business.. Consider what the facts demonstrate: First, profitable growth is the single most effective way to consistently create shareholder value, yet only one in seven companies achieves reasonable revenue and income growth rates for extended periods of time.. The most effective way to increase your company's rate of growth begins with refreshing your understanding of the business dynamics and microeconomics of your best core businesses.. The profitable core is the unique, and by definition, highly profitable combination of business assets, skills, products and relationships that distinguishes a company from its competitors and allows it to provide a unique value proposition to a segment of customers.. Frequently the profitable core generates only a small portion of company revenues, yet provides the bulk of a company's profits.. The most successful companies have one or two clearly defined profitable cores and out-invest their competitors in that core, leveraging it for highly profitable growth.

The EY CEO Survey 2022 finds that CEOs are focused on bold strategies to fuel market-leading growth. Read more.

1 Many CEOs are responding to the impact of the pandemic, according to the EY CEO Survey 2022 .. Key CEO considerations in 2022 Change from the inside out: Reconfigure internal processes to strengthen operational resilience and the talent agenda, while engaging external ecosystems – suppliers, partners and customers – to position for future growth.. Many CEOs are already expanding their horizons to capture future growth opportunities, with the understanding that bold steps now can increase potential to lead in the future.. Capex and corporate investment increases also point to many CEOs positioning their companies for critical future growth options.. Most investors are willing to support these longer-term growth ambitions, and CEOs understand that a compelling narrative is critical to securing investor support.. With the move in private capital to a longer-horizon view on investments, corporate CEOs should be mindful of a shifting competitive landscape and the downside of short-term thinking, especially when engaging potential investors.. Leading CEOs should feel emboldened to invest now and prioritize automation strategies aligned with critical business priorities to improve long-term impact on resources.. 3 In 2021, M&A was the CEO accelerant of choice for strategic ambition – from buying innovation to fuel digital transformation to acquiring scarce talent, from reducing ESG risk profiles to entering new markets and services.. CEOs still see M&A as a critical accelerant for long-term growth strategies – acquiring operational capabilities and innovation.

Everything you need to know about the types of growth strategies. A growth strategy is one that an enterprise pursues when it increases its level of objectives upward, much higher than an exploration of its past achievement level.

Type # 1.Internal Growth Strategies: The internal growth of an organization is possible by expanding operations through diversification, increase of existing capacity, market growth strategies etc.. The firm pursues intensive growth strategies with an objective to achieve further growth of existing products and/or existing markets.. A firm pursuing market penetration strategy directs its resources to the profitable growth of a existing products in current markets.. This strategy involves the growth of market through substantial modification of existing products or creation of new but related products that can be marketed to current customers through established channels.. Diversification strategies are used to expand firm’s operations by adding markets, products, services or stages of production to existing operations.. Joint venture is a form of business combination in which two unaffiliated business firms contribute financial and/or physical assets, as well as personnel, to a new company formed to engage in some economic activity, such as the production or marketing of a product.. Internationalization Expansion Strategy: International strategy is a type of expansion strategy that requires firms to market their products or services beyond the domestic or national market.. Intensive Growth Strategies: Intensive growth strategies aim at achieving further growth for existing products and/ or in existing markets.. Integrative Growth Strategies: One of the common growth strategies is the integrative growth strategy.

You don’t need a formal strategy role to help shape your organization’s strategic direction. Start by moving beyond frameworks and communicating in a more engaging way.

Some executives reach the C-suite because of functional expertise, while others, including business unit heads and even some CEOs, are much stronger on execution than on strategic thinking.. By the time executives have reached the upper echelons of a company, almost all of them have been exposed to a set of core strategy frameworks, whether in an MBA or executive education program, corporate training sessions, or on the job.. General ideas can be misleading, and as strategy becomes the domain of a broader group of executives, more will also need to learn to think strategically in their particular industry context .. Expanding the group of executives engaged in strategic dialogue should boost the odds of identifying company or industry-disrupting changes that are just over the horizon—the sorts of changes that make or break companies.. For many executives, the rise up the corporate ladder requires a deep understanding of industry-specific technologies—those embedded in a company’s products, for example, or in manufacturing techniques—but much less knowledge of cross-cutting technology trends, such as the impact of sensors and the burgeoning “Internet of Things.” Moreover, many senior executives are happy to delegate thinking about such technology issues to their company’s chief information officer or chief technology officer.. The strategy journey model described by our colleagues, for example, involves meeting for two to four hours every week or two to discuss strategy topics and requires each executive taking part to flag issues and lead the discussion about them.

As a business owner, you will always want to be making strides forward to help your company to grow and reach the next level.

As a business owner, you will always want to be making strides forward to help your company to grow and reach the next level.. Increasing your marketing efforts can raise brand awareness, increase visibility online and drive more traffic to your company website.. SEO PPC Content marketing Social media marketing Email marketing. Times change quickly in business which means that market research can quickly become outdated.. Carrying out new market research will help a company to discover crucial new information about their target customer and the competition which could help them to identify gaps in the market and other ways to succeed.. Consider any gaps in the market and problems that your target customer faces and find a way to solve these issues.. The key to success with a strategic alliance is finding a suitable company as, in addition to not being a competitor, it must also be a brand that shares similar values to your own.. Updating to new tech can be costly, but it could have a significant impact on your company by streamlining the operation, automating specific tasks, reducing errors and improving the quality of the end product or service.. One of the most overlooked (and under-invested) areas of business, yet one of the most important for success, is customer service.. People like to use companies that they respect and trust, and it can be much easier to retain loyal, existing customers than to find brand new ones.. Improving your customer service will help to keep customers, strengthen your brand reputation and you should also benefit from word-of-mouth marketing which remains incredibly effective.. Improving your customer service will involve going the extra mile for customers, solving issues quickly and letting customers know that they are valued.. You can also encourage loyalty through the use of loyalty programs which will show that you care about your customer and appreciate their business.. It can feel risky to make changes to how you operate when you are running a profitable business, but it is also one of the most effective methods to grow a business.

A corporate strategy is a set of deliberate choices that a corporation makes to maximize its value over a period of time.

A corporate strategy is a set of deliberate choices that a corporation makes to maximize its value over a period of time, which includes specific guidelines with respect to how it will create and distribute the value that it extracts from its multiple business units.. What is corporate strategyIn a company with a single. business unit the goal of its strategy is fairly straightforward: maximizing. the valuation of that business for its shareholders over the foreseeable. future.. Most of the concepts that are typically associated with a business strategy such as competition , market forces and disruption usually refer to the strategy of a particular product or business unit.. While each unit must have its own. strategy set at the business level, taking into account the particularities of. the market and its incumbents, a Corporate. Strategy must still be set at the “mothership” level to guide the. general behavior of the corporation as a whole and of each of its business. units.. Example: Corporate vs business level strategy at NextEra energyFor example, at a given point in. time, you may decide that it is better to reinvest profits from a strong. business, that happens to be in a dying industry, onto a weak unit that’s. getting traction in a fast growing market, rather than trying to protect the. market position of the dying business.. Amazon, for example,. runs its massive e-commerce platform as a standalone business, while owning. other businesses like Amazon Web Services (AWS), a cloud computing business;. Zappos, an online shoe and clothing retailer; and Whole Foods Market, a. brick-and-mortar supermarket chain specializing in organic food.. Because these units each operate. in different markets and face a completely different set of conditions and. threats, each must have its own business-level strategy, operated under the. guidance of Amazon’s corporate strategy.. A corporate strategy establishes. a series of choices that an organization makes with respect to how it will. create and distribute the value extracted from its business units and from. that, we can conclude that to really extract the most out of your company’s. resources, you must adopt some kind of portfolio approach to how you manage the. units and allocate resources.. When it comes to managing different business units through a corporate-level strategy, we suggest adopting a portfolio mentality, where you seek to maximize the value that the portfolio (i.e., the different business units) creates as a whole over a period of time.. A Competitiveness-Attractiveness matrix can help you create a better corporate-level strategy, by adopting a portfolio mentality in how you manage your different business units Those familiar with classic. strategy tools will note that this is an updated take on the Growth-Share Matrix introduced by the. Boston Consulting Group (BCG) in its early days, where we are using. competitiveness and market potential as proxies for the original dimensions.. Cash cows: Businesses with a strong market position in a low growth market.. Pets usually yield a low return on the company’s money, the reason why many experts call them “cash traps,” so by Jack Welch’s rules these business units should be either sold or closed.. Companies with a more serious. approach to capital allocation enforce centralized management of the cash. produced by each individual unit, even if those operate as individual. businesses.. We call this approach the “cash factory” since the company’s individual business units are seen purely as cash machines whose only job is to produce cash and send it over to the headquarters, and executives at corporate-level decide how that money will be distributed across all operations or invested towards new areas.. Each business must be allowed to make strategic decisions that respond to the reality of its particular market, but capital allocation decisions are made as part of the corporate-level strategy.

Growth strategies mean a set of actions and plans that make a company expand its market share than its current position in the market.

A growth strategy is a set of actions and plans that make a company expand its market share than before.. If you want to increase the growth, productivity, activation rate, or customer base, then you have to develop a strategy relevant to your product, customer market, any problem that you’re dealing with.. Either you offer products at cheaper prices to capture the market share, or you charge higher prices to grab a completely different segment of the market.. The market expansion allows you to grab the market share of a completely new and different market.. Product development strategy helps you to attract new customers, increasing sales, and expand your market share.. The company launched the market penetration strategy and targeted a very narrow customer base, and gradually expanded its market.. You like growth in terms of customers’ base, revenue or profit, new location, new product, new market, new branch, expansion of current office, or the employees’ headcount.

Business growth strategies are the single most important set of strategies to develop and maintain growth in your company. This post is part of a series

Business growth strategies are the single most important set of strategies to develop and maintain growth in your company.. This post is part of a series that links competitive advantage to developing and executing business growth strategies and company development strategies.. Business growth strategies are strategies you can use to increase the size of your business.. Our definition of customer development, as described on the OpenView Labs Website, is “Customer development is the design, creation, and delivery of all of the touch points that your product buyers experience to help them find, perceive, try, and purchase your products and services and renew and grow their relationships with your products and company over time.. The 3 core “whats” of a business growth strategy define the target customer segment, the product that will be delivered, and the customer development channels that will be used.. If you have multiple business growth strategies, you should describe these three dimensions for each strategy.. – What company development strategies are necessary to support the business growth strategy?. – How are you going to support the product development and customer development with company development strategies?. For example, people, organization approaches, operational processes, legal and financial support?Now, better support the “whats” and “hows” and the “whys” of your business growth strategy: Why is this strategy the best business growth strategy?. Defining the target customer segment, the target product, the target customer development channels and addressing the rest of the “whats,” “hows” and “whys” will set you up really well with the best business growth strategies and make it easier to drive your strategy into your operating rhythm.. Some companies develop aspirations at an early stage of their development and should consider their aspirations when developing their business growth strategies (and consider adjusting their aspirations and/or their business growth strategies to make sure they align).. As a company reaches a stage of development where the company has one or more solid business growth strategies in place, the management team should be at the point where they develop their company aspirations (if they have not already done so) and ensure their aspirations and business growth strategies align with each other (again, adjusting either or both so they align).. I am a huge fan of Steven Blank’s ideas on iterating and adjusting as you move from strategy design through execution (which I believe fits into the “agile” development concepts) and I believe that at every iteration you are essentially trying to more clearly and accurately describe your business growth strategy while you are adjusting the strategy based upon the results from the prior iteration.

These 10 business growth strategies will help you make your service-based business more efficent, profitbale, and scalable!

For professional service-based business owners, there are neverenough hours in the day to get all their work done for their clients and work on building a long-lasting, sustainable business.. But if you want to make your business more profitable and scale your services, you have to devote time to working ON your business, instead of just working IN your business .. In this post, I am sharing TEN Business Growth Strategies that will help you get your time back while positioning your service-based business to grow quickly.. And you can’t grow your business by working with high-maintenance, low-rent clients.. Let these clients go, and focus on replacing them with good clients that value your work, and respect your effort.. Retaining the clients you want to work with is critical to growing a service-based business.. If you spend all your time on tedious to-do’s, you’ll never have time to work on the strategies that grow your business.. One of the most common service-based business tasks is delivering a monthly report to your clients.. Spending time working ON your business, as opposed to in your business is easier said than done.. Agreeing to complete your “Rock” on schedule means you dedicate additional time out of your day to make the business run more smoothly.. Assigning and completing quarterly business improvements allows your business to run more efficiently, take on more clients, and increase profit margins.. One of the quickest ways to free-up time to work on your business is to clear unwanted and unnecessary commitments from your schedule.. One of the quickest ways to grow a service-based business is to do work for the right clients.

Strategy for Executives is the only strategy book that you and your teams will ever need. A self-contained framework in a book. Download it for free here.

Strategy for Executives is a self-contained strategy framework which introduces the core concepts of business strategy and its implementation tools from scratch, so that you don’t need any previous knowledge or experience.. CHAPTER 1 The Building Blocks of Strategy We begin our journey from the very start with a contemporary definition of what strategy means nowadays, explaining with real-life examples the clear distinctions that exist between the strategy at the business level, and in a company that owns multiple business units.. CHAPTER 2 Understanding Profits In this chapter, we explain the underlying mechanics of profit creation, establishing important clarifications about value, profits, profitability and how they relate to your strategy, introducing fundamental concepts that are critical such as Value Propositions,Value Chains and Business Models.. CHAPTER 4 Protecting “Profitability” In this chapter we explore business strategy in a dynamic context and start by understanding the underlying drivers that lead to the “commoditization” of your products and services.. CHAPTER 5 From Market to Operations Here we explore the operational side of your strategy and explain how your business’s value chain can become an effective barrier against commoditization, at the same time that we introduce some ideas to help you keep alignment between marketing and operations.. CHAPTER 6 Growing the Core We start the third part of the book describing a number of ways to grow your core businesses, followed by the introduction of a few less conventional paths to growth that some companies have been able to implement successfully, including the creation of complementary products and the “productization” of your value chain to offer the things that you excel at as services to other companies.. CHAPTER 7 Creating New Products and Services This chapter will take your growth efforts into a whole new dimension with the introduction of a number of frameworks to help you improve your existing products, develop new ones and even create entirely new markets.. CHAPTER 9 Making Strategy Happen This chapter introduces the building blocks of a solid execution system and provides you with specific guidelines for the design of your organization to improve your ability to implement the strategy and track its performance.

Table of Contents

Business growth strategy is a practical approach to achieve growth in business.. An entrepreneur instead of finding a new market with existing products can bring out a new product in a market.. Market Penetration strategy helps to increase market share of the current product or services in the existing market.. Renault gains market knowledge while Mahindra learn how to make good cars, and leverage its dealership network to additional profits.. Merger helps in enhancement of market share and reduces competition.. Conglomerate merger Conglomerate merger is a combination of firms engaged in unrelated lines of business activity.. This strategy can be opted by small businesses by having a brand name of a well-known company associated with it.. Profitable The entrepreneur can enjoy more profits by concentrating in a narrow segment and focusing the efforts towards the target market.. A chain of contacts helps in developing networks.. Networking is a business strategy by which business opportunities are created through networks of like-minded business people.. Increase in customer base: A business owner who is well-versed in networking skills can be assured of a profitable business climate and a steady stream of both new customers and repeat business.. The concentration of industries in a certain geographic region is known as geographic concentration.

Is there a science to growth? Absolutely! Learn the growth strategies Dropbox, Uber, Tinder, and AirBnb used to achieve massive scale.

How to define a growth strategy The different types of growth strategies you can implement Examples of successful companies who’ve executed out of the box growth strategies. In the most simple light, a growth strategy is a few tactics or a plan of action you use to grow your company revenue and market share.. Employing either of the above product development strategies will usually lead to your company acquiring new customers, making sales to existing customers, and naturally growing your market share.. They penetrated the furniture market by selling their products at incredibly cheap prices to the existing market — by taking away assembly & storage, consolidating warehouses, and utilizing low-cost materials.. Another growth strategy you can utilize is to capture an entirely new market share.. So using your existing customer base to spread the word about your product or service is a great way to grow, while also simultaneously builds trust with customers.. Uber also sponsored several tech events and provided free rides to their users in their early days.

A solid growth strategy is an absolute must for getting a new business off the ground. Learn how to put one together and some of the most popular methods here.

Similar to organic growth, this strategy relies on companies using their own internal resources.. A growth strategy allows companies to expand their business.. Not sure what that looks like for your business?. Next, outline how you’ll achieve your growth goals with a detailed growth strategy.. To expand a business and its revenue, companies can implement different strategies for growth.. Viral Loops Milestone Referrals Word-of-Mouth The 'When They Zig, We Zag' Approach In-Person Outreach Market Penetration Market Development Product Development Growth Alliances Acquisitions Organic Growth Social Media Excellent Customer Service. Typically, whatever customers Business A has, Business B does not.. Market penetration increases the market share — the percentage of total sales in an industry generated by a company — of a product within a given industry.. Social media can help you increase engagement with your target audience and make it easier for potential customers to find your brand.

The top 17 business growth strategies for small businesses that will guide you in developing an effective business strategy.

When you start a business , it means you should develop a strategy of how to provide your product or service to the masses.. As a result, without a complete understanding of your competitors’ strategies, you will neither get more customers nor will you maintain the existing ones.. The most successful companies continuously research competitors.. One of the best small business growth strategies is creating a sales funnel as soon as possible.. This can be one of the useful small business growth strategies to get new customers while retaining existing ones.. As one of the small business growth strategies, you can ask your loyal and satisfied customers to refer your business, products, or services in their social circle.. Another useful method of a business growth strategy for small businesses is creating a customer loyalty plan.. It maintains existing customers to provide business growth.. With the help of text marketing, you will be able to penetrate the market.. Also, you will expand your business into existing and new markets.. However, it is up to you what kind of a brand image you create to entice the customers into buying from you.. While your product may not be something new in the market, you can always market it by finding innovative use for the product.. Thanks to the internet and social media, you can now promote your business and sell your products all over the world.. It goes without saying that all you provide in your blog section is for your target audience.. Make the most effective business growth strategy and grow your business today!

Growth strategy falls under the purview of strategic planning which charts out the roadmap for the future growth of the business.

Growth strategy is a strategy to win increasing market shares so that the business is always on a growing trajectory.. The growth strategies for your business is not just a series of processes that you just start to boost the growth of the products and services that you have.. If you want to make sure that the user base of your products and services can grow, then the company needs to have a proper method of working an implementing the strategies which can make your company and your product look more unique.. If you want to start knowing all about the growth of the company, then you need to start with the definition of the growth strategy.. First one is internal growth strategy, and the second one is an external growth strategy.. In this strategy, a company will be able to grow the share of it in the market by developing and creating some of the collections of new products which would be able to serve the market without any difficulties for sure properly.. Yes, the market penetration strategy is another one of the most important types of growth strategies that are used by the people in the company.. In this particular strategy, the company aims to have some growth in the market share by making sure that there are some developments being made in the market or the segments of the market in the best way.. The companies are using this strategy to expand their reach in the different market In this particular growth strategy; the company will be making an attempt to enter some of the new markets which are completely different from their own to make sure that their share in the market is increased as a whole.. Hence, it is important for companies to more and more about these amazing growth strategies for sure.. Conclusion on Growth strategies When it comes to growth strategies, there would be different ones for different companies.

Being strategically positioned means that your products occupy a market position that is both profitable and defendable. Learn how to do it here.

The aim of any business is to find a market position that is both profitable and defendable in its markets of choice, and such a position can only be achieved through differentiated products or lower relative costs, that is, by either serving different needs from competitors, or serving the same needs in different ways.. When your business occupies a market position that is both profitable and that you can protect, we say that it has been strategically positioned within that market, and as we saw in our strategy principles , there are only two ways to create such a position: through differentiated products, or through lower relative unit costs.. Explaining. ‘Strategic Positioning’ Finding. and Protecting a Positioning Strategy Strategic. Positioning Examples Linking Your Marketing Strategy with Your Operations Testing. the Defensibility of a Market Position The. Best Business Strategy Books References. The only way to effectively protect your business, that is, to ensure that it has a market position that is both profitable and defendable, is through the strategic positioning of its products and services.. How to differentiate your products and servicesStrategic positioning makes choices about how a business will “deliberately” protect core profits from industry forces and retain a profitable position in the market.. As a result of the dynamics and complexity of markets and competition, this market position (which classic strategists call a “Competitive Advantage”) becomes a bit of a moving target (a fast-moving one in some industries), making strategic positioning more like a “process” to continually adjust the perception of your business’s products and services in the minds of your target customers.. If you. think about it, Pepsi knows Coca-Cola’s strategy, the same way as Target knows. Walmart’s strategy and just as any furniture vendor knows Ikea’s strategy, yet. they have all managed to find a position in their respective markets where they. are profitable and difficult to challenge or imitate.. Craft your market positioning strategy: Make decisions about how you will position your products with the selected target consumers, which can be done through product features and benefits, pricing, sales, distribution and promotion efforts.. A perception map can help you measure the positioning of an industry’s products in the minds of its target consumersFor example,. if you were mapping the soft drink industry, you could see how Gatorade is well. positioned as a product with a high perceived value in the sports drink. segment, while Powerade is positioned as a low-price solution within the same. market.. So in essence, you need a market strategy to identify and define market opportunities, and an operations strategy that makes decisions about how you will configure your value chain (assets, processes and human resources) to capture that opportunity profitably.. Effective strategic positioning requires alignment between a company’s strategy and its operationsAlthough. each case is unique and depends on the specific type of company and industry. where you operate, we could say that in. general the strategy process follows a sequence which usually starts at the. market level, through some kind of market research or discovery process, which. then leads on to the definition of a target market, value propositions and. business models, and that from there it keeps moving upstream to the optimization. and streamlining of the activities in the business’s value chain that will. support the capture of those opportunities.

ADVERTISEMENTS: Read this article to learn about the meaning and types of growth strategies. Meaning of Growth Strategies: A growth strategy is one under which management plans to advance further and achieve growth of the enterprise, in fields of manufacturing, marketing, financial resources etc. As growth entails risk, especially in a dynamic economy, a growth […]

This growth strategy, as the name implies, aims at increasing sales of existing products through l market development, i.e. exploring new markets for company’s products.. Product development as a growth strategy implies developing new and improved products for sale in existing markets; so that people who have otherwise become indifferent to the old product with passage of time get attracted to the new product because of the charisma associated with the phenomenon of newness.. As growth entails risk, diversification, as a growth strategy, implies developing a wider range of products to diffuse risk or to reduce risk associated with growth.. Modernisation may be a pre-requisite to the adoption of other growth strategies like product development, diversification (of many dimensions) etc.. (II) External Growth Strategies: Some popular external growth strategies are described below:. (Concentric means having the same centre) Concentric merger takes place when companies which are similar either in terms of technology or marketing system, combine with each other i.e. combining units do production with the same technology or use the same distribution channels.

Here’s how Swisscom did it.

But leadership teams are rarely aligned on what degree of growth is needed and what markets and types of innovations to invest in.. The Approach Faced with stagnation or decline in a mature industry, leaders at the global telecom Swisscom engaged in a unique program involving structured dialogues and interactive exercises to reveal misalignments and help the team converge on common growth goals and strategy.. The Outcome Following the program, Swisscom embarked on a clear long-term growth strategy, launching a set of innovative ventures, creating a VC-like group to oversee related investments, and locking in a schedule of annually increasing funding.. Recognizing the perils of divided leadership, Schaeppi formed a small strategic transformation team, led by one of us, Markus Messerer, along with an internal change manager from Swisscom.. That group worked closely with the 10-member group executive board, which we’ll call “the leadership team.” Because Swisscom’s traditional strategic-planning process focused on short- and medium-term plans, Schaeppi decided to try a new approach.. By the end of the process, the leadership team had converged on the “North Star” vision of Swisscom for 2025 and allocated resources for growth opportunities such as data security, the internet of things, and vertical markets including financial tech and transportation.. The narrower view could consign Swisscom to stagnation, so at the outset, the leadership team decided that its strategy must extend the company beyond the core.. To help establish a shared language, the leadership team embraced a new lexicon: Core innovation makes existing products better and reduces the cost of making or distributing existing products; adjacent innovation and transformative innovation (including disruptive innovation) drive growth in new markets, customer segments, and business models.. To help the leadership team understand the 2025 growth gap, the strategic transformation team deployed a visualization tool called a waterfall chart that showed the size of the gap and how various scenarios and changes to underlying assumptions would affect it.. Before one session, for example, the team members stated their views of what the firm’s strategic aspirations should be, the potential of several growth ventures, the impact of emerging technology, and the firm’s ability to drive sustainable differentiation in the core business.. So the strategic transformation team did something that may sound a bit weird: It asked the leadership team to physically engage.. Central to the narrative was the 2025 growth ambition for Swisscom in core, adjacent, and transformative innovation and the view of the business beyond traditional telecom.

Restructuring is an opportunity for all companies to re-set for growth.

This puts restructuring and transformation at the top of the agenda, and not only for the companies most affected by Covid-19.. The economic and social turmoil in 2020 however made company leaders across industries see restructuring as a tremendous opportunity to reshape their business for a new era.. It can be a powerful tool to set the foundation for more sustainable growth in the future; including enabling companies to repay loans needed to make it through the pandemic.. To understand the extent to which companies need to transform and how their leaders view this challenge, we conducted a global survey and asked executives across 11 industries in North America, Europe, the Middle East, Africa (EMEA), and the Asia-Pacific region how they expect the global economy to develop, and what they think this means for their business development and renewal strategy post Covid-19.. Executives are very much aware of the key drivers that are likely to dramatically reshape the way most of the world’s companies do business.. Given how crucial they are to almost any sound business model, executives should not lose track of these trends when developing their transformation agenda.. The wave of restructuring and fundamental business transformation we are about to witness will be unlike anything we have seen before.. The objective is to right-size the business for today and fundamentally reposition it towards new business and growth areas.. The results of our survey conducted with 250 senior executives from large, global corporations across a variety of industries and based in North America, EMEA and Asia-Pacific during March 2021, show three key insights:. Companies plan for growth – and there is a significant increase in the importance of transformation on their agenda The primary focus is on building new business models and adapting the operating model to compete with new digitally-enabled capabilities in the future Efficiency goals are limited – they are focused on people and business operations, while being enabled by technology. Instead, value-based restructuring offers a quick and effective model to strike the right balance when cutting costs and to establish a strong path for sustainable and profitable growth.. Zero base the affordable cost. structure, differentiated for. each business segment Make “eyes wide open” choices. about where to invest, where to. cut deep and where to tread water. in a way that is aligned with your. value perspective.. To truly emerge in a position of strength you will need. to challenge every part of the business, and transform the. organization to enable savings and make the results stick.. Strategy&’s Covid-19 economic scenarios are based on a consensus of analyses that incorporates more than 180 sources and predictions (including from global research institutes, universities, investment banks, national governmental and supranational bodies, and ratings agencies), as well as financial data on 40 million corporations globally from 35 countries and 16 industries.. Strategy&’s Restructuring Survey was conducted in March 2021 among senior representatives of ~250 unique companies globally, well balanced across 11 industrial sectors in North America, EMEA and Asia-Pacific.

Strategy in your growth-oriented business plan serves as a reminder of what’s most important. Hint: It's not about what you're doing; it's all about what you're not doing.

The business plan for strategic growth is one of my favorites because it’s about core business decisions, steps, metrics, and making things happen.. Strategy Execution Milestones and metrics Essential business numbers. Strategy is what you’re not doing.. Furthermore, it seems to me that if they don’t seem obvious after the fact, they didn’t work.. Still, my favorite is the one we use with LivePlan: problem, solution, market, and identity (or why us ).. You can already see from the restaurant example that the choice of market influences the business offering.. That’s strategy at work.. These four choices are your business strategy.. The genius is finding the opportunity for growth, and managing the steps and resources to make it happen.. Execution tactics are the key elements of a marketing plan, product plan, and finance plan.. And you can’t do a strategic growth plan without working through the tactics that will execute the strategy.. Make sure your tactics match your strategy.. Your goal is execution, and milestones and metrics inform execution.. People like working toward milestones , and they like seeing their progress marked in specific and concrete metrics.. The business plan is just the first step.

Videos

1. How to Build a Growth Strategy: Bringing it all Together (Growth Strategy Part 4/4)
(virtualstrategist)
2. Business Growth and Concentration Strategies
(StudyVids)
3. Strategy - Prof. Michael Porter (Harvard Business School)
(Itqan Leadership Strategia)
4. 5 Business Growth Strategies for Managers | Brian Tracy
(Brian Tracy)
5. 5 Keys to Success for the Strategic Leader
(Columbia Business School)
6. REVENUE GROWTH STRATEGY FRAMEWORK BY FORMER MCKINSEY INTERVIEWER
(CaseCoach)

You might also like

Latest Posts

Article information

Author: Clemencia Bogisich Ret

Last Updated: 09/27/2022

Views: 5265

Rating: 5 / 5 (60 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Clemencia Bogisich Ret

Birthday: 2001-07-17

Address: Suite 794 53887 Geri Spring, West Cristentown, KY 54855

Phone: +5934435460663

Job: Central Hospitality Director

Hobby: Yoga, Electronics, Rafting, Lockpicking, Inline skating, Puzzles, scrapbook

Introduction: My name is Clemencia Bogisich Ret, I am a super, outstanding, graceful, friendly, vast, comfortable, agreeable person who loves writing and wants to share my knowledge and understanding with you.