Successful Business Growth Strategy

If you stick to your point? “This is the golden rule for companies in times of crisis.

So why 53% of companies have spent more time planning new products and services they did last year and 66% have invested more resources to research new markets?

These are the results of the Roffey Park Management Agenda 2011 Report, which helps organizations understand what to expect next year.

With 90 percent of companies worldwide who do not have a sustainable and profitable growth over the last decade, Chris Zook head of global strategy practice at Bain and Company, encourages companies “do not deviate from this you know and ensure that their business is strong heart “in his new book” Enjoy the base. “

A growth strategy based on the definition of their craft and heart Zook emphasizes the importance of identifying key strengths:
• Who are the customers the most potentially profitable franchise?
• What are the capabilities the most differentiated and strategic?
• What are your product offers the most critical?
• Which channels are most important?
• Are there other critical strategic assets that contribute to the above assets such as patents, trademarks, or position in a checkpoint on a network?

After identifying his heart craft, consider two elements of a possible growth strategy.

1. Strengthen and uphold the core
• Define the boundaries of the firm – the constraints to growth and their own business
• Identify and verify the sources of differentiation and competitive advantage will continue to create market power and influence customers, competitors, and industry profit pool
• Evaluate whether the facility is operating at or near the economic potential

2. Develop into segments related
“The expansion of contiguity” The term is continuously moving segments of a company or related companies using and strengthening profitable core strength. Fundamental to improve the chances of a profitable and sustainable growth are:
• Identification of business opportunities nearby and the recognition of common features
• Evaluate and choose the right adjacencies
• Avoid some common pitfalls of adjacency expansion

Develop and strengthen the possibilities offered by the new pole. Four years ago, after a rigorous evaluation of its assets and the key drivers of the company, a supplier of industrial ceiling that work with modifications described in the legislation that would open the door to new product applications. They started working on these heart while strengthening their business through the worst economic crisis in their industry has known. While sales and profits are not where they should be, business growth is stimulated by new applications work on a solid core.

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Sunday, February 27th, 2011 Business Strategy

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