Growth strategies are essential for any business that wants to expand and reach new heights. There are four main strategies that companies can use to achieve growth: product, placement, promotion, and price. Each of these strategies can help a business acquire new customers, sell to existing customers, and increase its market share. The product development strategy involves introducing new products or services that have no technological or commercial relationship with current products, equipment, or distribution channels.
This type of diversification is often used by large companies looking to balance their cyclical portfolio with their non-cyclical portfolio. The goal is to attract new customer groups and generate a high return on investments in the new industry. The market penetration strategy focuses on selling the same product to the same people but in larger quantities. For example, Coca-Cola increased their revenue by 13% by linking their product to holiday sales. Apple also used this strategy when they released products that were designed from day one to attract a different customer base than those who had previously purchased Apple products. The Ansoff matrix is a strategic tool used during the development of a growth strategy.
It is often used in conjunction with other business and industry analysis tools to support stronger assessments of the factors that drive business growth. With a well-developed growth strategy, businesses can increase their chances of successfully expanding. A market growth strategy allows businesses to chart their path to expansion, taking into account their industry, target market, and finances. It is important to not only increase the number of customers or revenues but also keep costs under control for sustainable long-term growth. Google is an example of a company that used a smart growth strategy to boost their growth. Google's secret weapon was offering high-quality photos to help hosts create an attractive advertisement.
This encouraged recommendations which increased new subscriptions by 60%. The idea behind this strategy was creating a win-win situation with a complementary partner in order to support each other's growth objectives. No matter what growth strategy you employ, you will likely use some business development principles since the goal is to develop the entire organization. For example, if you rely on a sales team to get customers, it is important that they accept the objectives of your growth strategy model in order for it to be successful.