Growth is probably the only phenomenon associated with business that must necessarily remain constant throughout its operations. The fact is that if an enterprise is no longer looking for growth, it is not going to thrive in the competitive market for long. To that end, diversification and strategic growth plans are two correlated dimensions, which form two indispensable wings of growth. A specialised team is always required at every organisation to trace the market elements regularly to forecast the future business environment and craft a business growth plan accordingly.
It is of paramount importance to keep the market dynamism in mind while crafting the business growth plans, or else, the strategies might fall short of the reality bites. Managers, who are believed to be the pillars of an organisation, must stay aware of the latest growth strategies and must be adept with the latest market operations. Without an in-depth knowledge of the same, managers might fail to devise growth strategies that would impact the overall business performance of a firm in the long term.
Growth strategy is an umbrella term under which comes the significant components that are discussed below:
Product Development Strategy
The demand and the outlook of the customers keep on changing with time. As the market introduces more varieties of products and services wrapped in interesting and appealing offers, customers tend to get deviated from their committed purchases from one business house to another. To retain the business growth curve on its ascending cadence, this product development strategy can be an immensely useful tool.
It refers to the modification or addition of products into the existing line of products. The modification must be done keeping the changing requirements of the customers in mind. If a new product line is due, it must be one that can be related to the existing products so that the new entrant gets the benefit of the existing market share. A separate or completely different set of the product might not be identifiable by the customers unless the branding and marketing are done enormously.
Market Development Strategy
The market is the one place that serves all the business houses, and it is the competitiveness of the market that allows and helps the companies to thrive and evolve. Developing the market refers to extending the market beyond its familiar limits. If a business house introduces its products and services to the new markets where they have never traded before, growth is sure to creep in within a certain time. All you have to be careful about is that prior market research is a must for such fresh market acquisition. The customer trends, the product preferences of the market, the local competition, and several other factors that impact the business in the long term must be kept in mind before devising such a strategy.
Market Penetration Strategy
Reaching more people over time is the goal of this intensive growth strategy, which is a popular tool these days. Market penetration can be done via three dimensions. The sales can be given a push by:
- Involving the existing customers on a larger scale
- Pulling the customers from the competitors
- Converting the non-users into users
Once it is perceived that the existing line of product is falling short of the requirement and evolution of the market, new products must be introduced to keep the market share intact or growing. Hence, diversification refers to a strategic introduction of fresh product lines, sometimes different from the existing one that will blend seamlessly with the market demands.
To help the ambitious management professionals attain an insight into the most important growth strategies that can help drive business growth, IIM Calcutta, one amongst the leading management institutes in India, has brought forth its Executive Programme in Growth Strategies for Business Leaders. Participants are made familiar with the growth strategies without which the business cannot thrive and are equipped with in-depth knowledge that helps them thrive in the global market.
Delivered across the nation by Times TSW as an exclusive delivery partner for IIM Calcutta’s Executive Program in Strategic Management, the programme aims to introduce the executives to the myriad of dimensions a market has. Times TSW has 68 centres across the nation and participants can choose to attend the sessions at any of the centre. Join this IIM Calcutta executive programme to gain an insight into the art of creating business strategies for ensuring sustained growth.