Significance and challenges of a growth strategy
Growth as a necessity
Continuous and targeted growth is not only of central importance for the success of a company, but often also a prerequisite for ensuring its continued existence. New requirements from customers and markets as well as general trends such as digitization, are important drivers in this regard.
No profitable growth without strategy
Whether the focus is on market share, products or sales – most companies pursue growth targets. However, there is often no underlying strategy that defines concrete measures and processes for the targeted growth. Not only does this make it more difficult to achieve goals, but also limits the options for monitoring and controlling growth and adapting it flexibly to current conditions.
In order to grow profitably and in a targeted manner, it is therefore not enough to define growth as a corporate goal. To optimize individual corporate growth, very specific entrepreneurial measures are often required depending on the industry, market, customers and product portfolio.
With analyses to success
How to develop the right strategy? An intensive analysis phase forms the solid basis for both understanding the status quo and anticipating future developments. On the one hand, various external factors are illuminated, such as
- Market
- Competition
- Customers
- Products and solutions.
On the other hand, internal competencies and organizational structures necessary for growth should also be considered. Various available sources can be used for this purpose: Data analyses, classic market research, discussions with experts, dealers and suppliers, or even a customer survey together provide a comprehensive picture of the current situation, as well as the changes and trends expected in the future.
Approaches to developing and implementing a successful growth strategy
Strategy development
In the next step, the insights gained in the analysis enable the well-founded development of a strategy. A variety of methods are available for this purpose.
Matrix from Ansoff
To determine the basic direction of strategy, Ansoff’s matrix provides a systematic breakdown:
- Market penetration: The goal is to reach more customers with one’s own products in the existing market, including through upselling and cross-selling.
- Market development: The aim is to reach new markets or market segments with existing products and to grow through internationalization or the development of new customer groups.
- Product development: The goal is to expand the product range for the existing market and to grow with product variants or innovations.
- Diversification: The aim is to establish new products for the requirements of new markets. Areas can be developed with or without reference to the existing business (horizontal vs. lateral diversification).
Changes, potentials and risks
Stronger and more extensive changes, for example through diversification, offer greater growth potential. At the same time, they are associated with increased expense and higher risk. Therefore, all starting points should be thoroughly examined and compared before a decision is made.
If the focus of the growth strategy is on the market, the procedure for a market entry should be considered as well as specific sales strategies or the planned positioning in the market.
Pricing and marketing of existing products
In line with the previous analyses, concepts for pricing and marketing existing products should also be defined. If new products are at the center of the growth strategy, the leveraging of innovation potential is particularly relevant.
In any case, it is important to align the organization’s structure and processes with the new strategy so that growth can be optimally supported.
Implementation planning
Once the growth strategy has been defined and all concepts have been quantitatively validated, the third and final decisive step follows with implementation planning.
This is achieved by defining a roadmap with a timetable, defined roles and responsibilities, and concrete measures and action steps. Targeted change management supports the implementation of the changes decided in the growth strategy.
Central starting points are
- an open communication
- the involvement of employees in the process
- empowerment through information and training.
Project examples for the development of a growth strategy
In the past, Roll & Pastuch has already gained extensive project experience in the field of growth strategies:
- Identification and evaluation of growth markets
- Evaluation of international market entry opportunities including implementation
- Market entry strategies for product innovations
- Sales Push Initiatives
Let your business grow
We would be happy to provide you with further information and answer any questions you may have about your growth strategy. We look forward to hearing from you.
