The statistics are grim.
However, there are certain methods companies must use for implementing a growth strategy. The method a company uses to expand its business is largely contingent upon its financial situation, the competition and even government regulation. Some common growth strategies in business include market penetration, market expansion, product expansion, diversification and acquisition.
Market Penetration One growth strategy in business is market penetration. A small company uses a market penetration strategy when it decides to market existing products within the same market it has been using.
The only way to grow using existing products and markets is to increase market share, according to small business experts. Market share is the percent of unit and dollar sales a company holds within a certain market vs. One way to increase market share is by lowering prices.
For example, in markets where there is little differentiation among products, a lower price may help a company increase its share of the market. Market Expansion 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. If a business does not find new markets for its products, it cannot increase sales or profits. A small company may also use a market expansion strategy if it finds new uses for its product.
For example, a small soap distributor that sells to retail stores may discover that factory workers also use its product. Product Expansion A small company may also expand its product line or add new features to increase its sales and profits. When small companies employ a product expansion strategy, also known as product development, they continue selling within the existing market.
A product expansion growth strategy often works well when technology starts to change. A small company may also be forced to add new products as older ones become outmoded.
Diversification Strategies Growth strategies in business also include diversification, where a small company will sell new products to new markets.
This type of strategy can be very risky. A small company will need to plan carefully when using a diversification growth strategy. Marketing research is essential because a company will need to determine if consumers in the new market will potentially like the new products.
Acquisition Strategies Growth strategies in business can also includes an acquisition. In acquisition, a company purchases another company to expand its operations.
A small company may use this type of strategy to expand its product line and enter new markets. An acquisition growth strategy can be risky, but not as risky as a diversification strategy. One reason is that the products and market are already established.
A company must know exactly what it wants to achieve when using an acquisition strategy, mainly because of the significant investment required to implement it.Jul 09, · The business plan for strategic growth is one of my favorites because it’s about core business decisions, steps, metrics, and making things happen.
It matches my vision of business planning as ongoing management and steering a business. It’s not about explaining or defending a business for 5/5(2).
When you’re developing your business strategy, ruthlessly eliminate plans or steps that won’t advance you and your small business. Even if it’s a brilliant idea, if . Business Plans; Naming; Home-Based Business; The UPS StoreView; the maker of personal and small business tax and accounting software, Growth strategies are never pursued in a vacuum, and.
Be sure you have a solid marketing plan as part of your small business growth strategy to sell your additional products.
Your growth strategies in business rely on your own expertise, creativity, and willingness to work on action plans you develop for growth. Entrepreneurship Business Plans Writing a Business Plan: Choosing a Growth Strategy Office supply stores, for example, have been very successful at catering to the needs of individuals as well as small-business owners.
Creative Marketing Growth Strategies. November 29, Eventually you want your small business to grow into a big business, right? If that's true, then learn which big-business growth strategies might work for urbanagricultureinitiative.com are five growth strategies that small businesses should consider.