Defining Growth strategy and its different methods
Growth strategy is defined as the strategy that intended to achieve maximum market share, even at the outlay of short-term earnings. Four extensive growth strategies are:
The very important category of growth strategies that was popular in the 1950s and 1960s and is used far less often today is something called diversification where you raise your company by buying another company that is completely unrelated to your business. This is called huge corporation means different kind of businesses and financial growth under one company. This is considered as old strategy method and considered not be reliable these days having lots of risk included in it.
This type of strategy involves production of new products to sell to your accessible existing customers as well as to new ones. If you have a choice, you would ideally like to sell your new products to existing customers. That’s because selling products to your existing customers is far less risky than having to become skilled at a new product and market at the same time.
This type of strategy is useful as having minimum chances of risks. This strategy is developed for any business to just sell more of its current product to its current customers. Large consumer goods companies follow such type of strategy for their business growth.
In this type of strategy companies make a plan to sell more of their existing product to a nearby market means presenting their product or service to customers in another city or state. This strategy is actually a fast growing strategy that gives a fast boost to your business as well as maximum growth. This method is very popular and highly recommendable as many companies and different businesses firms open their offices as franchise in different cities, countries and states for maximum growth.