Whether it's customers, revenue, locations, leads, mentions, or profits, you've got to play the growth game if you want to be successful in business.
Growth is fundamental to a business' survival. Roughly 66% of businesses survive their first two years in operation, 50% make it to the five-year mark, and just 33% will celebrate their tenth anniversary. Those numbers are remarkably consistent across most industries -- but they also highlight how important it is to plan for growth from day one.
There are various ways to grow a company. These ways are clearly presented in the Ansoff model, a strategic tool used during the development of a growth strategy. It is a good basis for considering the strategic development of your company.
The Ansoff growth matrix is comprised of two axes:
1. Products:
Which products do you currently offer, and which new products would you like to offer in the future?
2. The market:
Which markets do you currently serve, and which markets would you like to serve in the future?
The four main growth strategies are as follows:
1. Market penetration
The aim of this strategy is to increase sales of existing products or services on existing markets, and thus to increase your market share.
2. Market development
This means increasing sales of existing products or services on previously unexplored markets. Market expansion involves an analysis of the way in which a company's existing offer can be sold on new markets, or how to grow the existing market.
3. Product development
The objective is to launch new products or services on existing markets. Product development may be used to extend the offer proposed to current customers with the aim of increasing their turnover.
4. Diversification
This means launching new products or services on previously unexplored markets. Diversification is the riskiest strategy. It involves the marketing, by the company, of completely new products and services on a completely unknown market. Diversification may be divided into further categories:
a. Horizontal diversification
b. Vertical diversification
c. Concentric diversification
d. Conglomerate diversification
Based on the strategies used and its ambitions, a company can choose one of these four strategies. This choice especially depends on the approach of a company's product/market and the latter's taste for risk.
Our experienced team cover all circumstances and across a wide range of sectors. Our approach is to start with a clear understanding of the situation and design a bespoke model using proven methodologies and techniques. The advantages of our models include creating outputs and usability that are designed specifically for the user, as well as providing the flexibility of assumptions to perform sensitivity analysis.
Our experts partner with clients, providing perspective not only on immediate value and impact, but on long-term implications. We work closely with management and other advisers to leverage and complement their knowledge and ensure maximum impact, and actively support implementation and skill building.