Question

explain 5 ways in which an entrepreneur can implement growth strategies in an organization

Answer 1

One enterprise growth strategy is market penetration. A small business uses a strategy of market penetration when it decides to market existing products within the same market it has used. According to experts at small businesses, the only way to grow using existing products and markets is to increase market share. Market share is the percentage of unit and dollar sales held by a company in a given market versus all other competitors.

Growth policy of business expansion, also called consumer creation, includes the selling of existing goods in a new market. There are many reasons a corporation may find a plan to broaden the market. Next, the rivalry in the existing market can be such that there is no space for expansion. If a company does not discover new markets for its goods, therefore revenue or earnings can not be raised.

Small companies may also extend their product range, or add additional technologies to increase their revenue and earnings. When small companies adopt a policy of sales growth, also known as product creation, they tend to sell within the current market. A development plan for product extension also performs best as the market continues to evolve. When newer models are outmoded, a small business can often be compelled to add new items.

Business expansion strategies can include diversification, in which a small company introduces new goods to existing customers. That kind of plan can be particularly dangerous. A small business would need to think carefully by implementing a growth strategy to diversify. Marketing analysis is important, as a business would have to decide if customers on the current market would like the new goods

Business growth strategies can also include a takeover. One company purchases another company in acquisition to expand its operations. A small enterprise will use this kind of approach to extend its product portfolio and reach new markets. A strategy for growth in acquisitions can be risky but not as risky as a strategy for diversification.