A business growth strategy is a carefully thought-out plan to help businesses of all sizes expand and scale. Some business growth strategies include specific projects, promotions of products or services, mergers and acquisitions, expansion into new markets, or in some cases, a combination of these methods.
For maximum impact, you can use a tried and tested strategy or develop your own after thorough market research. If you’re looking for innovative ideas to scale your business, you can go through the following methods:
Market Penetration Strategy
A common type of business growth strategy that you can adopt is market penetration. Market penetration happens when a company can increase its presence in an existing market. The two types of market penetration strategies are horizontal and vertical.
In horizontal market penetration, a business can do things such as maximize its brand visibility, increase advertising, or introduce a new, improved product. Vertical penetration, on the other hand, occurs when a business increases its production, decreases its prices, or creates a range of new products.
Some examples that successfully implemented marketing penetration strategies through the years include Apple and McDonald’s.
Market Development Strategy
Simply put, a market development strategy is primarily concerned with developing new markets to ensure opportunities for scaling. One can use this strategy only:
- If they have done enough research about potential customers
- If they have created brand awareness
- If they can understand the value of their offerings
- If they have built new relationships with trade partners
- If they can understand customer needs
- If they have developed a strategic plan
Product Development Strategy
If you’re interested in increasing your sales and growing your business, you can
Product differentiation, also known as product development, is a tangible method of market penetration because it allows a business to distinguish itself from other companies in the same industry. This is one of the most lucrative ways to increase sales and grow your business.
The addition and development of new products allow you to attract customers who may still need to learn about you. Introducing new products or diversifying your product line will help extend the period you can stay competitive in your industry.
Most business strategies focus on the product and the market. The Ansoff business model is a time-honored and dependable strategic development tool developed by the mathematician Igor Ansoff that is often used by businesses for competitive differentiation. Other than the three strategies mentioned above, here are a few others deployed to further growth trajectory:
Diversification is considered one of the riskiest strategies. Introducing new products and services to markets that haven’t been tapped into before is a bold gamble.
This creates allies between two or more businesses. Each offers an asset the other lacks, and together everyone benefits.
International Expansion Strategy
International expansion helps diversify revenue streams and expands market share. It increases profitability while minimizing liability.
Alternative Channels Strategy
Grow the consumer base. Gaining access to a consumer network with less competition gives your business a tactical advantage.
Growing a business is a complicated synthesis, from identifying the right market for expansion to implementing profitable financial strategies. An effective business strategy selection is based on many internal and external factors. Still, their goals and willingness to take a risk make a difference when it comes to the decision-makers. Choosing the right strategy is just the beginning. The climb towards running a sustainable and successful business is a Sisyphean task.