Market Penetration
Increasing your share of a market by improving quality, reducing prices or increasing your brand recognition and image.New Geographies
Increasing your distribution to new regions or countries.New Channels
Increasing your distribution to new channels such as retail, ecommerce or vending machines.Premiumization
Increasing your selling prices by improving quality or perceived quality using branding techniques. For example, an organic cosmetic company that increases its average price by 30% by improving products and packaging.Share of Wallet
Selling more to your existing customers as opposed to looking for new customers. For example, a consulting firm that is able to double revenue while at the same time cutting the number of total customers. This typically involves careful relationship management and focus on customer satisfaction.New Business Models
Inventing a completely new market that didn't previously exist with an innovative product or service. This is difficult to do but allows you to take an early lead in a market with no competition. For example, the introduction of the first highly usable smart phone essentially represented a new market for electronics.Market Expansion
Selling the same product to a different market. For example, a consumer products company that sells organic soap begins to sell to businesses and governments by repacking the soap for use in public locations such as schools.Diversification
Entering a completely new industry in which you do not currently operate. For example, a restaurant chain that opens up a hotel.Horizontal Integration
Offering new products at the same level of the supply chain in which you currently operate. For example, a manufacturer that decides to manufacture a new line of products.Vertical Integration
Offering new products or services at a different level of the supply chain. For example, a food manufacturer that begins to farm its own ingredients.Acquisitions
Buying another company adds their revenue to yours. This is a type of inorganic growth because it doesn't create new revenue but simply transfers revenue from one firm to another.Investment
Putting money into a firm that you do not control can increase revenue in terms of dividends and capital gains that may be recognized as revenue.Productivity & Efficiency
Reducing costs by improving productivity and efficiency can result in net revenue growth.Notes
An increase in gross revenue is known as top-line growth and an increase in net revenue is known as bottom-line growth.| Overview: Business Growth | ||
Type | ||
Definition | An increase in the gross or net revenue of a business. | |
Related Concepts | ||
