What is growth strategy?
Growth strategy is a plan to expand a business either within its current markets or new ones.
What are the main types of growth strategies?
The four main types of growth strategy are core, adjacent, exploratory, and diversification.
- Core business growth involves incremental improvements to existing offerings to outcompete rivals
- Adjacent growth involves adapting products or services to meet the same or similar needs in adjacent markets
- Exploratory growth comes from moving into new or emerging markets with new offerings or business models that leverage existing capabilities.
- Diversification means serving unrelated mature markets, most often achieved by the acquisition of companies operating in those areas
Why is having a growth strategy important?
Growth strategies help keep a firm focused on learning how a market is changing so that it can take advantage of new opportunities and defend itself against emerging competitive threats. As such, growth strategies are essential to avoiding the threat of disruption in the core markets or product categories in which a company competes.
What is an example of a growth strategy?
The technology company Nvidia has moved successfully from selling graphic processing semiconductors to providing the same technology for use in artificial intelligence adding a software platform to enable an ecosystem of players to apply their technology to meet new needs. This has led to an 8000% increase in the company’s market value.
- Is Culture the Silent Killer of Innovation?
- 10 Lessons Learned: Driving Internal Transformation as Corporate Explorer
- Crossing Wires: Failing to Separate ‘Explore’ from ‘Core’ Business
- Artistic Talent and Business Acumen: How the Atlanta Opera is Reinventing Opera Performance during the Pandemic
- Map Innovation Streams for Success in Core & Explore