How I Implemented Business Growth Strategy

 

The young Injap Sia, together with this writer when he, opened his 1^st store in Manila

It may seem easy to just think of expanding your business, but it takes more than just wanting things to happen. Statistics have shown that only a tiny percentage of businesses may really afford to do an expansion because of a lack of resources. That is why it is best to start small and stay as it is until the business is really ready to venture into something big.

For a business to thrive is to be able to layout a growth strategy that brings out good results with minimal risks and effort. To better hold of all of these, develop a workable plan and provide you with the result to make you take the next level. Never be in a hurry to go all the way up, as you may miss out on specific important points that could lead to your business crumbling.

1. Intensive Growth through Market Penetration

Have you noticed how some products are now being sold in bulk? Like the beer in cans or toilet paper? They were used to be sold individually. Until companies have pushed themselves into making the market buy their products in bulk. Because they knew that these are products that consumers are likely to buy more than one product at a time. Another way to market penetration is by providing several other ways to use a particular product. For example, we have gotten used to the thought that baking soda is used for baking. But now, it is also sold as a refrigerator deodorizer. Used as one of the ingredients in making toothpaste. It can be used to treat insect bites and itchy skin by making it into a paste.

2. Intensive Growth through Market Development

This means selling your products and services to people outside your locality, like in another city or state. With this strategy, considering having another branch may be the best solution for how you may be able to reach out to more people. Some companies have had their business franchised. This is actually a good move when the company may not have enough resources to build its own. And instead, have others help them to expand the business through franchising.

3. Alternative Means

More than selling through a physical store, you may also want to consider selling your products or services online. This is one of the very common methods of how businesses have expanded. The internet can reach out to more people than just relying on walk-in customers. Since the internet can be accessed 24/7, customers may be able to purchase what they want anytime, anywhere, with just a few clicks.

4. Product Enhancement

Businesses should be able to develop new products that can easily be patronized by existing customers. This means developing products that are not far from what you are already selling. Your existing customers are more likely to buy.

5. Introducing New Products for New Customers (Target Market)

After running the business for some time, a business may need to introduce new products that cater to different people to widen its target market. That is how some companies have different kinds of products to offer because they would not want to be stuck with just one type of customer. Expanding the business by adding new products will definitely increase the chances of letting the business grow.

Taking any of those strategies poses some risks, so you should come out prepared. Just remember to take one step at a time rather than drag the business into a place where the risk may be more considerable than the real opportunity of keeping the business.

Diversification

In the 1950s, diversification was a growth strategy that some companies tried to embrace. Diversification in business means that a company acquires another company that is unrelated to their kind of business. Some of the largest conglomerates in the Philippines are:

1. SM Investment Corporation

We have known SM in retail merchandising for 30 years. But now, they have ventured into shopping mall management and development, financial services via Banco de Oro, tourism through SM Land Inc, hotels through SM hotels and SM Hypermarket, and SaveMore stores. Their total market capitalization as of 2010 amounted to about Php330 Billion.

The success of SM Management Corporation was not done overnight. It took them years, and with careful steps, how they could expand their company that more people would trust.

2. Ayala Corporation

This is one of the oldest companies in the Philippines that has an interest in real estate. Through Ayala Land, financial services through Bank of the Philippine Islands, and telecommunications through Globe Telecom, Inc., to name a few.

3. San Miguel Corporation

They were formerly very well-known to be involved in food, beverage, and packaging company. But now, they have ventured into power distribution via Meralco, oil-refining, and retail via Petron; telecommunications via Liberty Telecom; mining via Daguma-Agro-Minerals, Inc., and banking via Bank of Commerce.

All successful companies now have gone through the same difficulties as any small business has. But it is through having a good business plan integrated with workable growth strategies that are carefully initiated. Having the right people to trust in making plans work out and investing with the right kind of products have made them what they are today.

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You may contact Armando “Butz” Bartolome for questions and more information.

Email: [email protected]

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Website: https://www.butzbartolome.com