Next read: Examples of Growth Strategy
Backward IntegrationExpanding in the value chain away from the customer. Example: a furniture company that grows its own trees.
Forward IntegrationExpanding in the value chain towards the customer. Example: a farmer who sells pies at a farmer’s market.
Top-line GrowthGrowing revenue, possibly at the expense of profitability. Example: startup with fast growth that is loosing money.
Bottom-line GrowthGrowing your actual profit instead of pursuing unprofitable revenue.
Market PenetrationIncreasing your market share in existing markets with existing products and services.
Market ExpansionEntering new markets.
Product DevelopmentCreating new products.
Product DiversificationCreating new types of products for new markets.
Market DevelopmentEntering new markets with existing products and services.
Geographic ExpansionNew locations or regions to reach more customers.
Market EntryDistribute products and services to a new market.
Distribution PartnersDistribute through new partners such as ecommerce platforms.
Organic GrowthGrowth driven by your business activities.
Inorganic GrowthGrowth driven by mergers and acquisitions
PremiumisationCreating premium versions of your products.
Price DifferentiationMaking your products more accessible to price sensitive customers without loosing high margin revenue from price insensitive customers. Example: coupons that are inconvenient to find and use.
Vertical IntegrationOwning multiple levels of the value chain. Example: retailer that manufactures its own products.
Horizontal IntegrationExpanding your business at the same level of the value chain. Example: manufacturer opens a new factory.
Brand ExtensionUsing an existing brand for new types of products and services.
Licensing and FranchisingUsing intellectual property to expand revenue with licensing or franchising.
Customer Lifetime ValueSelling more to your existing customers.
Customer RetentionReducing the loss of existing customers can boost growth.
Production GrowthProducing more of a product or service from an operations perspective.