In business you’re either going forward or going backward. There’s no such thing as standing still. Making sure that direction is forward involves employing one or more of a variety of growth strategies. Business growth strategies can be categorized as horizontal or growing outward, vertical or growing upward or downward in the supply chain, diversification which involves adding new service offerings and intensification which focuses on expanding market share. Strategies will differ in their scope and impact but one or more of them must be employed in order to achieve success in business. Four types of growth strategies that can be employed are:
- Horizontal Integration – Horizontal integration refers to the strategy by which businesses grow by expanding outward. Many different tactics can be employed when choosing a growth strategy and as in all business ventures the same decision making process will be employed such as risk vs. reward and return on investment … Read More >>
- Vertical Integration – Vertical integration is a business growth strategy that is employed when expanding a business in a ‘vertical direction’. This refers to taking over business that is part of the supply chain … Read More >>
- Diversification – Diversification strategies fall into 3 different categories. Concentric diversification refers to a growth strategy that involves leveraging existing competencies and expertise to enter new markets. Horizontal diversification involves offering services that are not related to existing expertise but may appeal to markets currently served. And lateral diversification refers to services that match neither existing expertise nor customer base … Read More >>
- Intensification – Intensification growth strategies involve achieving greater sales through increased market share… Read More >>
