Question

Please describe three different types of growth strategies and provide a real-life business example of each one

Answer 1

Answer- All organizations have their own success plans for the betterment of business. To make a company developed, its mandatory to follow certain growth strategies which can be described as follows-

• Market expansion is a growth strategy where a company sells its current product into a new market. It is also known as market development. This strategy focuses on increasing the market share of current products in relation to price, promotions, advertising etc. For example, Sunsilk hair products were introduced in U.S. market but they are also sold in Europe and Asia.
• Other important growth strategy is product expansion. A small organization can also expand its products selling line. New features can be added to increase the price. This strategy is beneficial with the change in technology. Eg- Lays removed trans fats from its salty potato products.
• Another strategy which can be adopted for the growth of an organization is diversification strategy. Here, a small company sells new products in a new market. This strategy is very risky and should be adopted after proper market research. Eg- The JK group of companies is dealing with different businesses like business of textiles, computers, chemicals,cement and many more.
• Acquisition strategy can also be included as growth strategy. It is a process in which an organization purchases another company in order to expand its productivity. Eg- Tata Group acquired Corus with a price of $12.98 million.