The more you grow in business, the more it becomes a necessity to develop powerful growth strategies that will support increased expenses, allow you access to more resources, clients, better talent, and increase revenue.
The following are 4 powerful growth strategies that established businesses can make the most off in order to expand their audience, customer base and revenue. These are strategies that have been tested by businesses all over the world in various capacities and to various results. Please note that each growth strategy requires intensive market research, a specific marketing mix, a strong budget and time, as well as some personal mindset work for the operations, marketing, and business managers.
Market Expansion
This growth strategy, otherwise known as market development, allows a business to expand their current line of products (or services) to new markets, which can be new geographic segments (continents, countries, national regions), new demographic segments (age, sex etc), new institutional segments or new psychographic segments (personality traits, values, attitudes, interests, and lifestyles of consumers).
In other words a business will start offering the same product (service) to a new market with the hope of increasing revenue.
eg: using baking soda as an air cleaner/freshener instead of just making cakes, using vinegar and baking soda for cleaning purposes, instead of solely culinary purposes.
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Product Development
This growth strategy, otherwise referred to as product expansion, implies expanding the product (or service) offering within the existing market. This is oftentimes the growth strategy company use when their products have become outdated. Essentially, businesses adopting this strategy are looking at improving existing successful products or develop new products that would better match their target audience.
eg: using a new type of fabric for a wedding dress to make it lighter, switching to a more durable material for a laptop cover, improving (or developing) the old software on an accounting device/platform to match the audience’s desire for flawless, fast technology, updating (or developing a new) the recipe on the pizza dough to make it healthier etc
Important note: it is oftentimes more affordable to improve an existing product (or service) than developing a new one.
Market Penetration
This growth strategy implies selling the same product(s or services) to the same market OR launching in a market where similar or exact same products already exist with the purpose of increasing revenue by increasing market share. Businesses would use strategies such as price adjustments, promotions, new distribution channels, strategic alliances that aim to increase market share, respectively gaining competitors’ customers.
When this growth strategy is applied through price adjustment (eg lowering prices), make sure you aware of manufacture, marketing, delivering costs for your products (services) and make sure the promotional price does not make it challenging to cover the above mentioned costs.
Diversification
This type of growth strategy is closely linked to your marketing strategy, performance and budget. It essentially implies selling new products or services to new markets. This means you need a budget to test, develop and market new products, while at the same time research, warm up and sell to new markets.
It is one of the riskiest growth strategies and will deliver poor to no results if it is applied without a proper marketing strategy and awareness of costs, timeline and specificity of the new market.
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Hi there! My name is Monica. I am a visibility coach who works with established entrepreneurs who want to grow their businesses with powerful visibility strategies and personal growth.
