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The best business growth strategy for your company may not be the same as your competitor's. You may need to take a completely different approach than competitors in your industry in order to grow your business. Market research and forecasting ahead on ways to meet clients' needs before business strategy planning is essential if you expect profitable growth.
The best competitive business strategy is the one that will allow your company to experience solid growth. Trying to compete in an area in which your competitors are likely to eventually overtake you is a poor business growth strategy in the long run. Either you'll need to sell more of the products you currently have by opening new stores or branch out into capturing new markets by offering different items. These new products shouldn't be goods that your competitors could simply start carrying, but rather angle them to fit your company's unique selling proposition (USP).
For instance, shoe stores sell the same product, yet often have very different USPs, target customers and marketing angles. A luxury footwear store chain carries expensive brands. These stores are likely to have high end furnishings with the shoes elegantly displayed. Attentive clerks typically assist customers.
Footwear chains that focus on the budget-conscious consumer are very different. The stores are practical in design and often have aisles piled high with boxed shoes for customers to try on themselves. Since the different store types target different customers, it wouldn't make sense to use the same strategies. Customers of the expensive shoe store aren't likely to welcome the idea of forgoing attentive service to dig through a messy stack of shoe boxes to find something they may like. Likewise, the budget shoe store creating expenses to make a fancier decor and footwear displays would be a poor business growth strategy since the customers wouldn't expect to pay more for the same products.
Global, rather than local, regional or national, market growth may be an ideal extension strategy for companies with a worldwide market. New sales possibilities would be created, but this business growth strategy needs to be weighed against logistics and costs involving added employees, transportation, commercial property and distribution. With the often lower labor and property costs in overseas countries, many larger companies do find global growth to be profitable.
Green business strategy may create growth by attracting a new eco-friendly target market. In some countries, government initiatives such as grants may be awarded to companies with a focus on environmental protection. A green-focused business growth strategy should first be carefully researched and planned out to ensure all laws and regulations will be met.