Sustainable growth of business is not an option anymore! It’s a need of the hour. Business growth is possible when there is a right strategy combined with the right market followed by right time! Yet, many companies forget the most important component – “Right Governance policies”. Thus, a “match” is accomplished between all the above factors, one can achieve high business growth.
Globally, there are numerous sustainable growth strategies to choose from, you want to select the strategy that best matches your unique business! We have already established a strategic planning guide in our previous article. Click here to read more.
Here is a list of 5 key sustainable growth strategies for your perusal to assist you to gain traction in the desired market and speed up the growth-
1. Market Development and Innovation
Expand existing products/services or continuously innovating existing products/services is necessary to maintain the market share. Occasionally changing the product packaging or modifying the product slightly can also open up new markets. How do you make this strategy succeed? Enjoying a keen understanding of the new markets is helpful. With the help of GRC tools like VComply, the organization is left to focus on business strategies.
2. Market Penetration and Expansion–
What should an entrepreneur do when new products/services don’t exist for expansion? When giving up on the existing business is not an option one would want to consider, the last resort would be to expand the current business in new areas.
3. Customer retention –
According to Emmet and Mark Murphy in Leading on the Edge of Chaos, acquiring new customers cost a company around 5 times more than retaining existing ones.
In fact, if a company retains 2% customers, it can have the same impact as reducing the company’s costs by 10%! To explain it further, decreasing customer defection rates simply by 5% could increase profitability by 25% to 130%, depending on which industry you are a part of.
3. Product Development –
One of the most easiest sustainable business strategies for companies is introducing new products into existing market to mirrors the market development policies. Even though it appears to be an easier strategy to implement, it has its own challenges. The NPD strategy of ExxonMobil is an excellent example of the new product development implementation. Developing new products requires new skills and continual tweaking until success is achieved.
5. Diversification –
Developing new products in new markets can be a riskier strategy in an unproven marketplace. However, if innovation is a business value (think Apple, Inc.) it may be worth the risk as long as you understand what’s at stake.Add to favorites