CONTINENTAL MANAGEMENT GROUP
Accelerate Your Business with CMG
GROWTH STRATEGIES
Once you have a steady stream of customers, it’s time to start thinking about where you want to lead your company. Many business owners we work with are content with simply owning a business that provides for their family. And that's great! But, if you're like the many others that are looking to grow their business, you need a solid growth strategy that can take your business to new heights.
GETTING YOUR BUSINESS TO THE PINNACLE
Now more than ever businesses need vision... from the outside looking in. Rely on CMG to give you this vision and help guide your growth...
1 Market Penetration Strategy
A small 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, according to small business experts. Market share is the percent of unit and dollar sales a company holds within a certain market vs. all other competitors.
2 Market Expansion or Development
A market expansion growth strategy, often called market development, entails selling current products in a new market. There several reasons why a company may consider a market expansion strategy. First, the competition may be such that there is no room for growth within the current market. If a business does not find new markets for its products, it cannot increase sales or profits.
A small company may also use a market expansion strategy if it finds new uses for its product. For example, a small soap distributor that sells to retail stores may discover that factory workers also use its product.
3 Product Expansion Strategy
When small companies employ a product expansion strategy, also known as product development, they continue selling within the existing market. 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 Growth Through Diversification
Growth strategies in business also include diversification, where a small company will sell new products to new markets. This type of strategy can be very risky. A small company will need to plan carefully when using a diversification growth strategy. 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 of Other Companies
In acquisition, a company purchases another company to expand its operations. A small company may use this type of strategy to expand its product line and enter new markets. An acquisition growth strategy can be risky, but not as risky as a diversification strategy.