There are different kind of strategies being implemented for increasing the sales and profit by business organizations. The kind of growth strategy an organization implements depend upon several factors like the financial status and competition. Some of the common business growth strategies a company implements are market penetration, product expansion, diversification and acquisition.
Market Penetration as a Business Growth Strategy
One of the growth strategies adopted by business organization is market penetration. This usually happens when a small or medium sized company market a product which is an alternative to the existing products in the same market. In such a case the only way to increase the business is by increasing the market share. The term market share defines the percentage of units and price a company possess in an existing market with respect to other competitors. One of the market penetration strategies involves the lowering of prices for the existing product.
Market Expansion as a Business Growth Strategy
Market Expansion or Market Development usually involves selling of a product into a new market. Several factors contribute to the market expansion strategies implementation. In most of the cases market development is considered when there is no further scope in marketing product within the existing market. This makes the company to find new markets to increase the profit. In certain cases if there a new group of users for the existing product the business might consider market expansion strategies.
Product Expansion as a Business Growth Strategy
Sometimes companies introduce new products or add new features to thee existing products through the product expansion process. While doing product expansion usually companies market the products with enhanced features in the existing market. The success of the product expansion strategies is determined by the technological change in the features of the product. When existing products become outdated companies are forced to develop new products in order to replace the existing products.