Enhancing Your Growth Strategy
Every business has an expectation to grow their profits and sales at some point or another. Growth depends on your financial situation, in addition to the market and the economic conditions that affect your industry. Your growth also depends on certain factors such as entry barriers and market penetration, expansion and reducing the associated risk of your new product or service, acquisition and speed to market, in addition to diversification and developing new capabilities.
If you’re entering into a new market, you want to consider the key players competing within your new prospective industry. What type of competitor are they, are they dominating the market with a lock on suppliers and do they have the capabilities to meet all customer demands? Dominating those areas creates a barrier, making it harder for you to penetrate your new segment.
If you have saturated your current market, selling more of your current offerings may be costly. You may want to consider selling them in a new market to increase your sales or provide new options to your current customers that have a need for them; researching current or prospective markets will help in providing new product or service ideas that benefit all of your customers. Consumer needs change often, along with technology, economic conditions and industry regulations. It is best to stay ahead of the game with new features and added value that exceeds your competitors to increase retention and loyalty.
Forecasting your strategy is important and the certainty of your future cash flows are necessary for its success. The right acquisition can increase your cash flow potential, expand your resources, networks, and capabilities through new employees, intellectual capital, and an enhanced supply chain.
Diversification is the key to a sustainable competitive advantage. Remaining a step ahead of your competition keeps your current customers coming back for more, while helping you gain the new customers within your new innovative strategy. If you are a start-up, your strategy should include penetrating new markets at a low cost. A question you and your team should keep in mind, is it more riskier to sell from your current item list or is it more beneficial to expand into new markets with new products or services that differentiate you from the rest? That may require new skills and the right team players to assist in developing the new capabilities to bring your growth strategy to fruition.
The PMC Team