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Every business faces the existential threat of competitors. Patent filings, market dominance, and even financial resources can’t shield them from this inevitability. So, what lessons can we take from companies that have endured and even prospered for centuries despite the fierce competition?
There are methods companies use for implementing a successful growth strategy. Some of the most common growth strategies in business include:
1. Market penetration
Organizations generally use a market penetration strategy when deciding to market existing products within the same market they have been using. In other words, businesses try to grow using existing products in order to increase their market share (the percentage that a company has of the total sales for a particular product or service).
2. Product development or diversification
There can be a number of reasons for an organization to consider a market expansion strategy. Competition can be so strong and overwhelming that it makes it impossible to grow within the current market. A business must find new markets for its products, otherwise, it cannot increase its profits.
A business growth strategy can also include the acquisition of another company as a way of expanding its operations. For example, Disney purchased Pixar, Marvel, Lucasfilm and, most recently, 20th Century Fox. The first three acquisitions alone have earned the company more than $33.8 billion.
To succeed in today's marketplace, businesses need to continue the discovery process, harnessing new strategies and advancements in technology. They need to grasp the fundamental principles that allow companies to make a leap and stay successful in the face of competition.
IMD's Business Growth Strategies course is an innovation strategy program that explores new ways of future-proofing an organization’s long-term business success. Don't miss the chance of getting valuable insights on how to adapt to the global market realities today.