Growth Strategy consulting is one of the many consulting services offered by Pearl Lemon Consulting. Let’s take a look at the meaning and a few examples of growth strategy.
Growth strategies are plans and actions that enhance a company's position on the market. The opposite is true: growth focuses on long-term goals instead of short-term earnings.
Marketing, design, leadership, and engineering are all integral to a successful growth strategy. You should always remember that if you do not implement your growth strategy throughout the organization, it won't be successful.
You cannot press a magic button to achieve growth. You must develop a strategy relevant to your product, customer market, or problem you are facing if you want to increase growth, productivity, activation rate, or customer base.
5 Examples Of Different Types Of Growth Strategies
Growth strategies can be categorized into the following types:
1. Plotting A Strategy To Penetrate The Market
The process of market penetration involves differentiating your product or service through price.
In order to capture market share, either you offer the product at a lower price, or you charge a higher price for a completely different product segment.
Additionally, you might want to promote and make your product more attractive in order to differentiate your brand. Only here you are changing your marketing and advertising strategies, to make your target customer perceive your product in a different light. As a result, your market share will increase.
For example, IKEA initially offered its products for lower prices because they were trying to penetrate the market.
By merging warehouses and removing storage facilities and assembly lines, the company is using cheaper raw materials. This contributed to the company's growth into one of the world's leading providers of affordable furniture.
2. Increasing Market Share
By expanding your market, you can capture the market share of a totally new market. You do this by focusing on untapped or underserved markets. Putting your brand in front of a global audience means expanding your market. Those who comprise the new demographic would be those you haven't previously served.
As an example, you sell watches in the United States. As well as in Asia and Europe you may also sell these watches. You would be able to grow your market share and customer base and become a global player.
3. Planning The Development Of New Products
Developing products and services to meet customers' expectations is part of product development strategy. The more satisfied your customers are with your product, the more likely they are to keep using it and tell their friends and family about it. You will get more customers when you refer them, and you will create a continuous loop of sales.
Product development strategies are followed by smartphone companies such as Apple iPhone. New features, a new design, and more power than the previous model have been announced with the new iPhone. HomePod was a brand-new product last year, and it was voice-enabled smart speakers.
Proficient product development strategies help businesses increase their sales, increase their market share, and attract new customers.
4. Strategize Diversification
By diversifying, we mean offering new products/services in unexplored markets. The new product/service will be marketed in a completely new market, so this is a risky strategy. Diversification can take many forms;
● Diversification horizontally
● Diversification vertically
● Diversification from the center
● Diversifying conglomerates
5. Collaborating And Partnering
In the same market and targeting the same audience, some businesses compete against each other, however each offering a different solution to the customer's problem. To expand your market share, you collaborate with them and form a partnership with them.
You sell luggage traveler bags to a retailer dealing with foreign currency notes. You have complementary businesses. In the case of an agreement between a bag seller and a current exchange retailer, the seller receives a commission for referring customers. Both parties benefit from the arrangement.
