Fostering accountability within your team. By the end of this five-step process, not only should you have a very clear idea of what goals to target for the year, but you will know exactly what is required of you and your team to get there. Writing out the steps is useful, but showing those steps can help everyone envision the path in question. Start by identifying your high-level business goals As human beings, we have a tendency to start all journeys at the beginning.
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.The least risky growth strategy for any business is to simply sell more of its current product to its current customers—a strategy perfected by large consumer goods companies, says McFarland.
Telecom Carrier Business Mid-Term Growth Strategy October 22, ShunichiroTejima, Executive Vice President alphabetnyc.com Business Strategies alphabetnyc.comss Plan Page 6. Market Environment Mid-Term Target and Strategy for the Telecom Carrier Business.
Later Stage Growth & Expansion: Companies Exploring New Markets, Products, and Divisions Growthink works with rapidly-growing middle market companies and successful business owners to explore the viability of expanding into new markets, launching new divisions, or developing new products.
Business Development Strategies is a combination of numerous individual tasks which has a goal of implementing and developing growth opportunities either within the .
Oct 18, · A strategic plan is a roadmap to grow your business. To help you succeed, use this proven strategic plan template, and the information below details the . Aug 14, · Find new ideas and classic advice for global leaders from the world's best business and management experts.