1. Diversification – Developing new products in new markets can be a riskier strategy given the unproven marketplace. However, if innovation is a business value (think Apple, Inc.) it may be worth the risk as long as you understand what’s at stake.
2. Market Development – One of the more common growth strategies is to expand existing products into new markets. The new market can be industry-related or geographical. Occasionally changing the product packaging or modifying the product slightly can also open up new markets. How do you make this strategy succeed? Enjoying a keen understanding of the new markets is helpful.
3. Product Development – One of the most comfortable business growth strategies for entrepreneurs is introducing new products into existing market as it mirrors the market development strategy. Even though it appears to be an easier strategy to implement, it doesn’t come without challenges. Developing new products requires new skills and continual tweaking until success is achieved.
4. Market Penetration – What’s an entrepreneur to do when new products and/or new markets don’t exist? When surrendering is not an option, expanding your current products in your current market is the way to go. It’s all about the competitive edge!