Question

As the CEO of a company, discuss how you can apply the FOUR (4) types of growth strategies.

Answer 1

INTRODUCTION : As you have not mentioned about the type of the company , i am assuming it as auto mobile Company ( car ) . GROWTH STRATEGIES are very important for any kind of company because , some where every firm reaches to a last place where the sales reach to maturity . Now the company has to expand its customer base with new growth strategies , if not in the long run the company may go to an dead end .

GROWTH STRATEGIES :

1) Product development

2) Reducing / Increasing prices

3) Diversification

4) Acquisition / Merger

1) PRODUCT DEVELOPMENT :

Product development can be one of the factor for the companies growth strategies because generally people will be bored upon the same kind of features that every car is having . So , if the company comes with a car of new features , may attract the customers largely . Product development may include

. Automatic gears system

. More security in accidents

. Self driving cars

2) REDUCING / INCREASING PRICES

This is generally a psychological strategy on the customers . Customers may think that : now we can afford the price of the car as it was reduced . So , the sales of the company may increase . If the price of the car inceases , customers generally think that new features were added . This may also results in Increasing sales .

3) Diversification :

If a company was good at manufacturing high priced cars , but the market has became very tough for new sales . In that type of condition , the company has to change its policy and began to manufacture some medium priced cars which may result in new sales .

4) ACQUISITION / MERGER :

Some companies are stronger in some geographical areas . As the company is reaching its maturity in sales . It may acquire or merge another company , so that it can make business with new customers and can increase sales drastically with new customers base. Old company geographical area of sales now becomes the market of the new company.

CONCLUSION :

Every company goes through ups and downs , success and failures . Its generally a common thing . But , as people and their need changes , companies has to changes thier products and strategies such that they can sustain or else they will fail in that long run.