Companies oftentimes face a plethora of unique challenges, especially in today’s highly dynamic, competitive and computational business environment. Various strategies, for example, adjusting pricing, identifying particular product strengths, acquisition of other businesses among many others, have historically been employed to propel small and upcoming enterprises to profitability and greater heights. A growth strategy is arguably one of the most prudent and most efficacious move that a business entity can adopt today to get off the ground and consequently realize greater turnover levels. Growth strategy may be implemented through market penetration, market expansion, as well as product expansion.
It is without a doubt that today, the economic environment is extremely sophisticated, especially considering that competition has sharply risen in recent times (Durmaz & Ilhan, March 4 2015) . As such, busines ses have to be profoundly innovative to ensure retention of their clientele as well as expand their market base. For this reason, a growth strategy can be useful, especially in helping a company remain relevant in the current dynamic economic environment. This strategy majorly involves introducing new products as well as adding new features to the already existing features. However, many modalities can be employed to implement a growth strategy effectively, and they are majorly contingent upon factors such as the company’s financial situation, its competition, as well as government regulations.
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The growth strategy is whereby companies formulate their plans wired at accomplishing particular goals and objectives to ensure organizational growth in revenue and size as well. As such, growth strategy can be incorporated to realize myriads of things, including obtaining economies of scale, retaining talented personnel, as well as attaining market command and leadership. One of the most notable ways through which growth strategy can be effectively implemented is through product expansion. This strategy is salient, as it eradicates complacency that has become a major undoing for many business entities.
It is important for a company to review its products or services that it offers with the view to constantly improve them to register profitability and overall success. In this respect, a company should be ready to heavily invest in modifying or even increasing its product line so that it can effectively keep up with the tremendously increasing competition (Durmaz & Ilhan, March 4 2015) . Otherwise, clients and customers may be compelled to start using other services or new technology infrastructure adopted by a competitive company. Growth strategy thus ensures that the company keeps up with customer demand, and this is handy as it enhances longevity, primarily through product expansion. When companies employ a product expansion and development strategy, it registers more sales and profits, especially today whereby technology has changed immeasurably.
In this regard, it is also important to underscore the vitality of diversification, which is an integral component of the growth strategy. The company may employ diversification through selling new products and services to new market bases, although this is significantly risky. Proper and careful planning is thus crucial, especially when employing diversification growth strategy. In-depth marketing research is pivotal since the company should correctly determine whether the new products and services will receive a positive reception in the newly found market base.
Apart from product expansion, a company can also employ a growth strategy through market penetration. This is whereby the company may choose to market the already existing products or services in the same market. Increasing market share is the only way to grow a company using existing services, products and markets. One of the best strategies to ensure market penetration is lowering pricing, especially in markets with little differentiation amongst products. This is an effective way of helping a company increase its market share.
Further, a company may choose to employ growth strategy through market expansion, otherwise referred to as market development. This is whereby the company may consider selling its existing or current products in an entirely new clientele base and market. A number of reasons could inform this. First, the competition levels could be so pronounced such that there is typically no room for business growth, particularly within its current market. In such a situation, if the company does not find newer clientele bases and markets for its services and products, then increasing profits and sales becomes an uphill task. Therefore, market expansion and development expansion is an effective modality of implementing growth strategy, as expanding the market base ultimately translates into more sales and hence greater profitability levels (Durmaz & Ilhan, March 4 2015) .
Conclusively, the current robustly competitive, sophisticated and fast-growing economic environment substantially calls for the adoption and effective implementation of strategic management modules. To survive economically and realize organizational growth, companies should thus devise prudent and informed strategies, key among them being a growth strategy. Owing to the financial position, competition levels and market projections, a company can effectively employ growth strategy through modalities such as market penetration, market expansion, diversification, as well as product expansion. All these are different approaches that can be employed to implement growth strategy, and if properly incorporated, they can play an indispensable role in turning the company around and subsequently helping it to soar to greater economic and profitability levels.
References
Durmaz, Y., & Ilhan, A. (March 4 2015). Growth Strategies in Busınesses and A Theoretical Approach. International Journal of Business and Management , 210-214. Retrieved from https://www.researchgate.net/publication/283644997_Growth_Strategies_in_Businesses_and_A_Theoretical_Approach
