growth strategies

growth strategies

as name implies growth strategies implemented to improve the growth of a organization. organization should decide on whether stay with current product and market or going for new product or market to increase the opportunities to be success.
there are four main strategies organization can practice

1. existing product to existing market - market penetration
2. existing product to new market - market development
3. new product to existing market - product development
4. new product to new market - diversification

market penetration

organization which follows market penetration strategy try to grow by using existing product and existing market. Dettol often follow this strategy. how firms practice this

• focus on competitors clients and convince them to buy our product/service
• increase the usage of the existing customers Dettol (have a watch on dettol's commercial video added in this page)
• increase the purchase amount of customers

market development

going with your existing product to new market is another good strategy when your products are matching the new segment's need and wants same time new segment is profitable. most of the MNC's and Global brands are examples for this strategy. Pepsi, face book and almost all started with a niche and expanded their product to other segments such other geographic customers.

product development

as name implies firm produce a new product for existing customer group, a company which have a strong customer loyalty can follow this strategy. when customer believe on you they will buy you new product even you are new to that industry or product
classic examples will be google, apple

diversification

diversification strategy means going to a fresh market with a fresh product, a new product for a new market. when your old products wont work, when you operate in a saturated market its better to go for this strategy.
three main types of diversification are

1. concentric
2. horizontal
3. conglomerate