One of the most powerful messages any leader can articulate is the Company Growth Strategies
There are five ways to grow, and setting acquisition aside, the Ansoff Matrix below remains one of the most elegant models to explain sophisticated organic growth strategies.
Growth Strategy 1 – Market Penetration. Taking existing products to existing markets. Of the four strategies, this is the cheapest (Index 100) and easiest to execute, although often overlooked. Increasing revenue through market penetration is predicated on valued products and services accompanied by excellent customer success.
Growth Strategy 2 – Market Development. Taking existing products to new markets. Geographical expansion is a relatively common CEO growth strategy with a cost of Index 400. Regional and international expansions have distinct challenges associated with market messages, sales practices, time zones, language, regulatory compliance and ideally minimal Product Development.
Growth Strategy 3 – Product Development. Taking new products to existing markets. When a company has well-established customers, leveraging more revenue through these existing relationships is a common growth strategy with a cost Index 400. CEO’s with highly functioning Product Management, Marketing and Development capability will leverage this capability to increase revenue. If you’re good at making products and services, how do you sell more? Mixed channel models become very attractive from direct only to a blended multi-channel distribution model.
Growth Strategy 4 – Diversification. Taking new products to new markets. Diversification is a challenging growth strategy with a cost index of 900. CEO’s who are successful with this strategy usually have excellent internal management systems and solid financial reserves to complete the execution.
All four of these growth strategies work. In reality, most companies simultaneously execute more than one strategy. What makes for compelling viewing is quantifying the percentages of company resource applied to each growth strategy and empowering people to align their daily decision making to the growth strategies.
Clarity on your growth strategy will boost your camera confidence, dramatically increase engagement and improve performance.