The Growth Strategy

Strategy aimed at winning larger market share, even at the expense of short-term earnings. Four broad growth strategies are diversification, product development, market penetration, and market development.

In general, there are two categories of growth, and these each contain their own strategies:

1. Inorganic growth is growth through a partnership. This typically consists of a merger where two businesses come together to form one company; or an acquisition where another company buys most of another company.

2. Organic growth is a growth strategy where a company works to increase their number of customers, revenue, and overall business development.

Organic growth is made up of four growth strategies:

• Market penetration is increasing marketing efforts with current products or services in the market that they are already operating in.

• Market development is expanding into a new market using their current products or services.

• Product development is adding a new product or service to what they are already offering.

• Diversification is entering a new market with a new product or service.

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