How does your business plan to grow your sales and profits? Business growth strategy definition includes market penetration, market expansion, product expansion, diversification, and acquisition. Business growth strategies, as well as examples of growth strategies, are the topic of this article.
A popular business growth strategy is called market penetration. This strategy is a good way to increase market share using the same products and services that a company is currently offering. The goal is to increase the percent of unit and dollar sales that a company has in their market over their competitors. If a company is competing with similar products and services they can lower their prices to increase their share or penetration of the market.This strategy is used when a business wants to develop new markets for their products or services or has new uses for their products and services. This is an example of a product growth strategy.
Another growth strategy is to add on new products or services as a way to increase a companies sales and profits. The business still sells to the same market and just adds in additional products/services.
Biz growth strategies often include diversification. This strategy means that a company sells new services and products believing that consumers want these and will purchase these.
Growth and expansion strategies may also include an acquisition. This occurs when a business buys another business to expand its operations and product lines.
All of these marketing growth strategies can be combined to accelerate business growth in addition to an organic growth strategy a business is utilizing.