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).
One way to successfully take on a bigger share of the pie is to lower the prices. For instance, in a market where the differentiation of products barely exists, a lower price may help a firm grow its share of the market.
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