Growth strategy is the means through which an organization plans to achieve its objective to grow in turnover and volume. There are six broad growth strategies which include; product development, diversification, market expansion and market opportunity, competitive market, market segmentation. It is a style that seeks stock with future investment rates of return being great than the stocks. Business growth strategies are unique in every business. However there are broad categories of strategies for business growth:
- New Product/Service Strategy Development
- Market Expansion Strategy
- Product Diversification Strategy
- Market Opportunity Analysis
- Competitive Market Analysis
- Market Segmentation Strategy
- New Product/Service Strategy Development
Developing new products or modifying existing products so they appear new, and offering those products to current or new markets is the definition of product development strategy. There is nothing simple about the process. It requires keen attention to competitors and customer needs now and in the future, the ability to finance prototypes and manufacturing processes, and a creative marketing and communications plan. There are several subsets of product development strategy.
Market Expansion Strategy
Learning how to expand your target markets – whether by customer type or geographic location – is often the linchpin for sustained growth. This requires a synchronization of operational capabilities and marketing to assure the market expansion strategy is viable and can actually be implemented. New market knowledge is critical to success, and consists of developing insights from target customers, assessing relevance and appeal versus competitive offerings, understanding the sales process and other offering delivery requirements. Maintaining clarity of the strategy just across the executive team, let alone the company, can be a huge task when the expansion strategy requires the company to reposition itself.
Product Diversification Strategy
Product diversification strategy works for expanding business opportunities through additional market potential of an existing product. Diversification may be achieved by entering into additional markets and/or pricing strategies. Often the product may be improved, altered or changed, or new marketing activities are developed. The planning process includes market research, product adaptation analysis and legal review.
Market Opportunity Analysis
An extension of the business planning process that focuses on identifying future opportunities and assessing the organization's financial, technological and competitive readiness to exploit them. The process includes identifying unmet or underserved customer needs, identifying target markets, assessing competitive advantages, and assessing the company's resource capacity in meeting the market's needs.
Competitive Market Analysis
In a crowded market (some refer to this as a red ocean), competitive intelligence is critical to both operational and strategic decision making. A rigorous and regular approach to competitive position, direction, and strengths and weaknesses can help senior executives identify gaps and opportunities. The implications and usages for such learning’s can be highly strategic (what new markets or segments should be pursued) to very tactical (what messaging will better position our offerings in our on-going promotional activity.
Market Segmentation Strategy
Segmenting markets, targets and opportunities can yield greater clarity and more specific relevance for a company and its offerings.
In some cases the same product can be repositioned to be made more relevant to a segment. In other cases, a solid market segmentation strategy will help justify new market entries and product development. This activity always leads to greater insights and clarity for how a company can serve its current and potential markets.
What ASPA Offers
Rajput Jain Associates Growth Strategy Practice will assist you in envisioning and defining a strategic direction for your organisation. We provide help you blueprint a strategy for growth to capitalize on market opportunities by leveraging on your existing capabilities, or recommending new competencies that you should build.
We have significant experience in providing companies with comprehensive market and customer insights to be able to execute their growth strategies successfully.
Marketing and distribution functions play a pivotal role in generating revenues, retaining customers and achieving the overall company objectives.
We provide strategic recommendations in various areas including channel management, customer segmentation, pricing strategy and go-to-market strategy.
Growth, Marketing and Distribution Strategy
Our Growth Strategy Practice will assist you in envisioning and defining a strategic direction for your organisation. We help you blueprint a strategy for growth to capitalise on market opportunities by leveraging on your existing capabilities, or recommending new competencies that you should build.
Marketing and distribution functions play a pivotal role in generating revenues, retaining customers and achieving the overall company objectives.
We have significant experience in providing companies with comprehensive market and customer insights to be able to execute their growth strategies successfully.
We provide strategic recommendations in various areas which include channel management, customer segmentation, pricing strategy and go-to-market strategy.
Post-Merger Integration and 100 Day Plans
A majority of mergers and acquisitions fail because of poor planning for integration between the two entities.
Our PMI service assesses the variance between the strategies, people, processes and culture of the two organisations and develops a risk mitigation strategy to ensure that a time bound integration happens.
Post 100 Day Plans
We have undertaken a number of implementation projects using a 100 day planning approach. We believe that the first 100 days creates the momentum required for successful implementation. The 100 day plan capability can be utilized in a number of situations:
Post definition of strategy to drive the implementation of strategic initiatives
Post acquisition to ensure that a fast start is made towards the implementation of the Investment Thesis and that momentum is sustained
Turnaround, to enable the process of rapidly identifying and implementing the required strategic and operational initiatives.
Strategic Cost Management
Controlling costs and improving cost structure is critical for most businesses. Our strategic cost management practice adopts a ‘process view’ of your business, as opposed to a functional view, allowing to see the organization as a whole. We work closely with you to identify and analyze each business process, make the plan target of improvement and Plan target improvements can be made by bringing short and long term cost structure improvements.
Supply Chain Strategy
We will develop a strategy to transform your supply chain performance by integrating and improving the end-to-end process that involves planning, sourcing, manufacturing, and distribution. We identify opportunities to reduce in-bound, in-plant and out-bound inventory based on demand and supply constraints. We work closely with you to optimise your distribution chain and logistics costs, by examining the channel and aligning your channel usage to the product-market mix most suited to it.