What is Growth Strategy?
Growth Strategy is a corporate strategy that’s used when an organization wants to expand the number of markets served or products offered, either through its current business or through new business.
A company's growth strategy enables it to deliver the best results, grow its worth, and create a competitive advantage. It contradicts the concept that progress is concerned with long-term goals rather than short-term profits.
Understanding Growth Strategy
Organizations grow by using concentration, vertical integration, horizontal integration, or diversification. A solid growth plan, on the other hand, combines product planning, development, administration, advertising, and technology.
It's necessary to keep in mind that the development plan will only be effective when you apply it throughout your whole firm. The growth strategy can have four parts as a planning process: objective, individuals, products, and techniques.
Growth strategies offer any firm clear objectives. One can maintain focus mostly on the present by devising a strategy of activity for sectors where the organisation must excel. Growth plans can assist businesses in improving what is presently performing effectively and modifying things that require modification.
Classifications of Growth Strategy
Generally, there will be two main types of growth, within each variety of techniques:
- Artificial: Artificial development is characterised by collaboration. This often comprises a merger, in which two firms unite to create one organisation, or a collection, in which another firm chooses the majority of another firm.
- Organic: Organic growth is another strategy in which a business strives to enhance its client base, income, and general business expansion.
Practical Example
ABC's aim is to raise income for its own business segment by 15% within one year through a regional growth strategy. The company understood that the amount of their media platforms presence is not the most important measure. Instead, it will pursue a different growth approach. The firm will collect information, as well as website traffic and other metrics from additional areas.
In Sentences
- Two major growth strategies are product and market development strategies.