Depending on where your business is in terms of development, you may need to evolve your current strategy, or develop a new one all-together. You may have had success in your local market, but keep in mind that expansion tends to be a place where 50% of small businesses seem to struggle, according to several business growth consulting services, which is why they don’t make it past the first 5 years. Since every business is different, make sure to invest in enough research before pursuing one of the following strategies.
Which Business Strategy Is Right for You
If your business is still in the early stages of development, then your target goal is probably the local market. A good strategy at this stage would be market penetration, which can be an effective way to acquire a larger share of the market. For those who are ready to break into new markets, a market expansion strategy is an ideal solution. Some companies make the mistake of using the same exact strategy in a new market, which creates complications when approaching a market with a different culture. This usually applies to international marketing but may happen even when expanding to a new state. If you feel that your product may be losing its edge due to technological advancements, you may need to implement a strategy call product expansion. The goal is to advance your product using newly available software or hardware. However, sometimes the current product cannot be advanced, for one reason or another, so new product development is required, which is called a diversification strategy. According to a number of business growth consulting companies, if you find yourself losing market share to a technologically advanced competitor, a product expansion or diversification strategy may be your only chance of survival.
The Business Strategy of Acquisition
Sometimes, you may find a company that already has a large market share, but they seem to be doing poorly. In certain cases, companies lack the required capital to make the right improvements, which provides a rare opportunity where you may get yourself a deal on that business, thus easily acquiring their market share. For this step, it’s recommended that you seek out business growth consulting services from a trusted firm.