Well briefed article and to the point , thanks alot. An acquisition growth strategy can be risky, but not as risky as a diversification strategy. One reason is that the products and market are already established. Diversification Strategies Growth strategies in business also include diversification, where a small company will sell new products to new markets.
It is because people will take time to create awareness about the new launch and then will make decision to make the final purchase or not. Another way can be to innovate, your product or come up with a product in a way that no one has ever done earlier. For this you will have to make use of the creative side of your company and come up with something that is already you are dealing in with.
Never offer a product that is not related to whatever you are already selling. Bestseller is the product that sells multiple times. An outstanding bestseller is the one that achieves more than normal level of production. Do some research and find out that which product has more potential in the market. Try a number of alternatives and finalize the product that has the largest sales growth. There are several other ways of business growth strategies.
They are as follows:. In short the above mentioned are the ways how to expand market shares. At times businesses employee only one expansion strategy while sometimes a combination of business expansion strategies is used. Situation and need varies business to business. Skip to main content. Some common growth strategies in business include market penetration, market expansion, product expansion, diversification and acquisition.
One growth strategy in business is market penetration. A small company uses a market penetration strategy when it decides to market existing products within the same market it has been using.
The only way to grow using existing products and markets is to increase market share, according to small business experts. Market share is the percent of unit and dollar sales a company holds within a certain market vs. One way to increase market share is by lowering prices.
For example, in markets where there is little differentiation among products, a lower price may help a company increase its share of the market. A market expansion growth strategy, often called market development, entails selling current products in a new market. There several reasons why a company may consider a market expansion strategy.
First, the competition may be such that there is no room for growth within the current market. If a business does not find new markets for its products, it cannot increase sales or profits. A small company may also use a market expansion strategy if it finds new uses for its product.
For example, a small soap distributor that sells to retail stores may discover that factory workers also use its product. A small company may also expand its product line or add new features to increase its sales and profits. When small companies employ a product expansion strategy, also known as product development, they continue selling within the existing market.
A product expansion growth strategy often works well when technology starts to change. A small company may also be forced to add new products as older ones become outmoded. Growth strategies in business also include diversification, where a small company will sell new products to new markets. This type of strategy can be very risky.
Expansion via concentration: This is the type of expansion strategy where businesses invest in resources towards a particular product line with proven technology facilitation. Using market penetration strategies, the firm may focus on existing market or existing products may be offered new segments of customers. If there is, a market expansion strategy can help you determine the best way to offer your products to a greater number of people. In general, this can be done in two ways: selling more of your existing product or selling new products. The reasons for the expansion could be survival, higher profits, increased prestige, economies of scale, larger market share, social benefits, etc.