Business Growth Strategies

GROWTH STRATEGIES IN BUSINESS S %24 %24 %24 %$4 1. MARKET PENETRATION One growth strategy in business is market penetration. A company uses a market penetration strategy when it decides to market existing products within the same market it has been using. The only way to grow using existing products and markets is to increase market share. 2. MARKET EXPANSION A market expansion growth strategy entails selling current products in a new market. Market expansions works where the competition may be such that there is no room for growth within the current market. A company may also use a market expansion strategy if it finds new uses for its product. 3. PRODUCT EXPANSION A small company may also expand its product line or add new features to increase its sales and profits. A product expansion growth strategy often works well when technology starts to change. A small company may also be forced to add new products as older ones become outmoded. 4. DIVERSIFICATION Growth strategies in business also include diversification, where a small company will sell new products to new markets. This type of strategy is often very risky, Marketing research is essential because a company will need to determine if consumers in the new market will potentially like the new products. 5. ACQUISITION Growth strategies in business can also includes an acquisition. In acquisition, a company purchases another company to expand its operations. An acquisition growth strategy can be risky, but not as risky as a diversification strategy. One reason is that the products and market are already established. %24 %24 %24 %24 %24