Strategic growth involves developing initiatives that will help your company grow in the long term. An example of strategic growth could be the creation of a new product or the development of a market strategy to target a new audience. It is the result of a strategic initiative, not of chance or of uncontrollable market forces. Sometimes, companies get lucky and their product or service is an instant success.
But more often than not, businesses need to create a growth plan ahead of time and then implement it. Traditionally, there have been four main strategies for business growth. However, I have expanded the existing framework to include a few more. So, here are seven specific types of business growth strategies you can use to drive your brand's growth. Bain & Company studied the growth-driving measures of 1,850 companies to determine how successful companies achieve sustainable and profitable growth.
They found that companies get the most profitable growth when they move to an adjacent target market. New distribution channels are among the top 10 business strategies for growth because they drive revenue growth without any change in products. E-commerce companies like Allbirds have increased their revenues by also increasing their physical presence. While Allbirds was exclusively online at first, it currently has 29 real-world stores. Alera Group, an employee benefits and human resource solutions company, is one such example.
They grew to 1,700 employees, mostly through a continuous flow of acquisitions. The Alera Group grew to 1,700 employees, mostly through a continuous flow of acquisitions. Klarna has also focused on geographical expansion, entering new markets in Europe and, eventually, in the US. UU. Today, Klarna offers flexible purchasing options to 90 million consumers in more than 250,000 stores in 17 countries.
Every day, more than 2 million transactions are processed around the world using Klarna technology. If you're a startup company entering an already crowded market, you may need to rely on market disruption strategies. Or, if you're a large retailer with a huge budget and you need immediate short-term benefits, you can use strategic partnerships. For example, if your goal is to increase the revenues of a particular line of business by 20% in two years through a geographical expansion strategy, the size of your followers on social media won't be the best metric to track. Rather, you might want to track location-specific metrics, along with site traffic and traffic conversion metrics from your most recent regions. A growth strategy is a plan to expand your business.
This usually means increasing your revenue. However, growth strategies can also be applied to the number of users, customers, products, market share, or even the markets served. The defining aspect of a growth strategy is that its objective is to expand your company's presence in the world. Even if you are making significant investments with any of the business growth strategies listed above, there needs to be elements of flexibility in your approach.
If you are clear about your growth strategy and the path to achieve it, teams will feel that they can contribute to the company's success. Here's what you need to know about the difference between strategic growth and growth for the sake of growth. You can use keyword research data to create a content strategy, identify the topics they're interested in, and create the right experience for each customer touchpoint along the journey. If you don't have the technology, staff, and training to manage your growth, it can even backfire and cost you dearly.
Market development is a common growth strategy because it allows you to go beyond your current customers. Organic search was a major factor in the rapid growth as the startup attracted 4.1 million organic visits to its website each year. When you start thinking about your growth strategy, you might find it useful to apply a flexible If This Then That (IFTTT) productivity application framework. Continuously optimize the activities of your business growth strategies and in the end you will win.
Measure your company's revenue growth relative to its investment in growth to create a return on investment (ROI) calculation. If you have a strong brand or great digital marketing skills, a marketing-led strategy could be the key to growth. It all depends on how you allocate your resources and the strategies you have in place to manage and sustain that growth. Contrary to popular belief, a growth strategy doesn't necessarily focus on short-term profits; growth strategies can also be long-term.
Your growth strategy must be communicated throughout the organization so that everyone is on the same page and can share ideas about the plan.