Growth Strategy

A growth strategy is an organization's plan for overcoming current and

future challenges to realize its goals for expansion. A growth strategy is a
purposeful, forward-looking plan for a company to achieve its long-term
goals. It’s critical to have both a long-term vision and a near-term focus on
execution, so you can unlock new opportunities with each milestone and
stage you hit.

Growth strategy helps to analyze the current, past as well as future goals to
define the growth opportunities for the success of any organization be it
small-scale, medium-scale, or large-scale. A growth strategy is a very
crucial strategy to define the goals of a firm.

By pursuing growth, individuals can increase their confidence, self-

awareness, and overall satisfaction with their lives.

PRELIMINARY QUESTIONS:
1. What is the competitive landscape?
2. What is the product mix?
3. Where does the firm lie in the value chain? What are its revenue
streams and distribution channels?

The main Growth Strategies are as follows:

Market Product
Penetration Development

Market
Divesification
Development

 Market Penetration Strategy: Market penetration is a measure of

how much a product or service is being used by customers compared
to the total estimated market for that product or service.
  Market Development Strategy: A market development strategy is a
business growth strategy that focuses on introducing existing
products to new markets.
 Product Development: A product development strategy sets the
direction and/or focus for new products or the steps to revise existing
ones.
 Diversification: A diversification strategy is a practice that
companies use to help expand their business

Growth Strategy Framework:

CASES

1) Our client is a food company that specializes in packaged snacks. They have been
experiencing a decline in sales in the past year and have asked us to help them figure out
why. What would be your first steps in approaching this problem?
2) Your client is an iPhone manufacturer based out of America. Post covid they are facing a huge
spike in demand and are not able to meet it with the current capacity. What should they do
to ensure that demand is met as soon as possible?
3) Your Client is a telecommunication Company. They are experiencing stagnant growth for the
past 1 year. They need your help in improving their growth.
4) Your Client is an international hospital which is operating in India. The client wishes to
increase the growth of their business. How can you them achieve their goal?
5) Your client is a pan-India video streaming OTT platform like Hotstar, Netflix, etc. Due to the
Competitive industry, their growth has stagnated. It wants you to devise a growth strategy.

6) Your client is a thread Manufacturer. It wants to row its revenue 4X in 4 years and has
approached your firm. How would you go about it?
 CASE.1
Our client is a food company that specializes in packaged munching options. They
have been experiencing a decline in sales in the past year and have asked us to help
them figure out why. What would be your first steps in approaching this problem?
To be successful in business, learn as much as you can about the industry and company.
Please provide information on your product line, marketing, sales, distribution, and other
tactics. Examine market trends to ascertain the best line of action. Greater knowledge equals
greater achievement. And more tactics. I would also consider market trends. Greater
knowledge equals greater achievement.
According to our analysis, the market's heightened competitiveness is likely to blame for the drop
in sales. Which remedies would you suggest to our client?
It is advised to invest in marketing initiatives, diversify product lines, and raise brand awareness
in order to cultivate consumer loyalty. Think about possible alliances as a way to broaden your
audience and create new opportunities.

Now, let's imagine that despite our client putting all of these strategies into practice, sales are still
falling. What do you believe could be the current cause of this decline?

We should look into their product development process if sales are declining. Maybe their prices
aren't competitive or their items don't fit the wants of the customers. Making sure their products
are optimized for the market is crucial.
Lastly, how would you assess if these suggestions were successful?

We can put our recommendations into practice in the following ways to gauge their
effectiveness: we'd promptly monitor sales and consumer feedback. We would also like to
investigate competitiveness in the market.

Fantastic work. Do you want to ask me any questions?

Could you elaborate on the details of the consultation approach that is tailored to food
companies?

Research and analysis are part of consulting, as is working with clients to create and carry out
recommendations. We work on growth initiatives, examine sales statistics, and conduct
market research. We also enhance distribution and the supply chain.

Alright, I get it. I appreciate your time.

SUMMARY:
Recommendations:
• Understanding the industry and company's product line, marketing, sales, distribution, and
other tactics.
• Analyzing market trends to determine the best action.
• Exploring potential alliances to broaden audience and create new opportunities.
• Investigating product development process to identify potential causes of sales decline.
• Monitoring sales and consumer feedback to gauge effectiveness of recommendations.
• Tailoring consultation approach to food companies, including research and analysis, growth
initiatives, sales statistics, market research, and enhancing distribution and supply chain.

CASE2:
Your client is an iPhone manufacturer based out of America. Post Covid they are facing
a huge spike in demand and are not able to meet it with the current demand capacity.
What should they do to ensure that demand is met as soon as possible?

Alright, I get it. I only have a few inquiries about the business. I'd want to learn more about the
business. The client's worth in the marketplace? Does the company supply other countries or just
America?

The client ships their goods all over the world.

Alright. What is each plant's maximum capacity and how many plants does it own?

1. Establish units in the United States 2. Production in China 3. Produced in Japan. Could you
perhaps explain these three possibilities to me?

The following items need our attention: 1. Regulatory standards 2. Suitability financially 3. The
process. Please provide the three options the company is searching for ranked in order.

China ought to be the top choice, in my opinion. First and foremost, I think about the economy
and how simple it is to establish manufacturing facilities with no intervention from the
government. Japan would be the second choice due to the nation's advancement in technology,
and America would be the last due to the rising value of the dollar, which would raise all costs
and boost demand for the good.

What would be your ultimate choice, then?

First things first, we should rule out Japan and America because of their strict laws. After
analysing all the information, we can conclude that China is the best and most relevant location
for manufacturing facilities because of its lower costs, more labour options, larger market share,
and potential for maximum profit.
Indeed, said. Regards.

SUMMARY:
• The company owns multiple plants.
• Three potential locations for production: US units, China, and Japan.
• Regulatory standards, financial suitability, and process are key considerations.
• China is the top choice due to its easy establishment without government intervention.
• Japan is second due to technological advancements.
• America is last due to rising dollar value, affecting costs and demand.
• China is the most relevant location due to lower costs, more labour options, larger market
share, and potential for maximum profit.

Case: Your Client is a telecommunication Company. They are experiencing stagnant

growth for the past 1 year. They need your help in improving their growth.

Recruiter: Hey there! Thanks for joining me today. I'm excited to discuss a real-world case that
our client, a telecommunications company, is currently facing. Imagine you're in the hot seat
as a consultant. Ready to dive in?

Candidate: Absolutely, I'm ready! Fire away.

Recruiter: Great! So, our client, let's call them TechCom, has hit a bit of a roadblock with
stagnant growth over the past year. They've approached us because they believe you're the
consultant who can help turn things around. What would be your initial approach to
understanding and tackling this challenge?

Candidate: Alright, let's start by gathering some crucial information. First, I'd want to
understand the current market conditions and competitive landscape. What are the trends in the
telecommunications industry, and how is TechCom positioned compared to its competitors?

Recruiter: Excellent point. Knowing the lay of the land is crucial. TechCom primarily operates
in a highly competitive market, with several players vying for market share. Now, as you dig
deeper, you discover that customer satisfaction has taken a hit lately. What steps would you
take to identify the root causes of this decline?
Candidate: I'd kick off by analyzing customer feedback, conducting surveys, and possibly even
talking directly to a sample of customers. It's crucial to understand their pain points,
expectations, and where TechCom may be falling short. Additionally, I'd want to review
internal processes, looking for any bottlenecks or inefficiencies that might be impacting the
overall customer experience.

Recruiter: Fair. It seems like you're really honing in on the customer-centric aspect, which is
key. Now, as you investigate, you find out that TechCom has been slow in adopting new
technologies compared to its competitors. How would you address this issue and leverage
technology for their growth?

Candidate: Given the tech-centric nature of the industry, it's crucial for TechCom to stay at the
forefront of technological advancements. I'd recommend a comprehensive technology audit to
identify areas where they can upgrade or innovate. This might involve implementing AI-driven
customer service, optimizing network infrastructure, and exploring new solutions to enhance
their service offerings.

Recruiter: Tech upgrades can give them a competitive edge. Moving on, let's talk about the
internal culture at TechCom. How would you assess and potentially reshape their
organizational culture to foster innovation and growth?

Candidate: Culture plays a significant role in driving innovation. I'd initiate employee
engagement surveys and feedback sessions to gauge the current culture. If needed, I'd
recommend leadership workshops to instil a culture of innovation, encouraging employees to
share ideas and take calculated risks. Collaborative spaces and cross-functional teams could
also be established to break down silos and boost creativity.

Recruiter: You've got a holistic approach here. Last but not least, how would you measure the
success of your consultancy efforts in turning around TechCom's growth?

Candidate: Success metrics would vary, but key performance indicators (KPIs) such as
increased customer satisfaction scores, a boost in market share, and revenue growth would be
essential benchmarks. Regular progress reviews and adjustments to the strategy based on the
evolving market dynamics would ensure we stay on the right track.

Recruiter: Alright. Your approach is comprehensive and strategic. It looks like TechCom
would be lucky to have you on board. Any final thoughts or questions on the case?

Candidate: I appreciate the opportunity to dive into this scenario. It's clear that a multi-faceted
strategy is necessary to address the challenges and propel TechCom towards growth. If there
are any specific details or nuances about TechCom that I should be aware of, please feel free to
share.

Recruiter: You've covered the essentials! We'll keep you in the loop as the process progresses.
Thanks for your insights, and we look forward to potentially working together on this exciting
venture!
Case: Your client is a thread Manufacturer. It wants to row its revenue 4X in 4 years and
has approached your firm. How would you go about it?

Recruiter: Hey there! Thanks for coming in today. We're excited to have you as a candidate to
help our client, a thread manufacturer, boost their revenue fourfold in the next four years.
What ideas do you have in mind to tackle this challenge?

Candidate: Hi! Thanks for having me. It's an interesting challenge, and I've got a few thoughts
on how we can approach this. Firstly, I'd dive into a comprehensive market analysis.
Understanding current market trends, customer needs, and potential areas for growth is crucial.
This will help us identify new opportunities and fine-tune our strategy.

Recruiter: That sounds like a solid starting point. What's next?

Candidate: Well, I believe innovation is key. We could explore the development of new, high-
demand thread products or even improve the existing ones. This could involve investing in
research and development, staying ahead of industry trends, and ensuring our products meet or
exceed customer expectations.

Recruiter: Great point! How about expanding the client's reach in the market?

Candidate: Absolutely! We should look into expanding our geographical presence, both
nationally and internationally. This might involve establishing partnerships with distributors,
exploring new markets, and customizing our approach based on regional preferences and
needs. A diversified market presence can significantly contribute to revenue growth.

Recruiter: Nice strategy! What about digital transformation?

Candidate: Embracing technology is crucial. Implementing digital solutions, such as an

efficient e-commerce platform, can open up new sales channels and streamline the ordering
process for customers. Additionally, leveraging data analytics can help us make informed
decisions, optimize inventory management, and tailor our marketing efforts to specific
customer segments.

Recruiter: Smart move! How about customer engagement and brand building?

Candidate: Building strong relationships with our customers is vital. We can enhance our
customer support, gather feedback to improve our products, and create loyalty programs to
retain existing clients. A strong brand presence, coupled with effective marketing strategies,
can help us stand out in the market and attract new customers.

Recruiter: Sounds like a comprehensive approach! Lastly, what about cost management?

Candidate: Absolutely, we can't overlook that. Streamlining operations, negotiating better

deals with suppliers, and optimizing the supply chain can help reduce costs. This, combined
with a focus on sustainability, could also resonate well with environmentally conscious
consumers, providing a competitive edge in the market.
 Recruiter: Okay. You've covered a lot of ground with these strategies. It seems like a well-
rounded plan. Any final thoughts?

Candidate: Just that continuous monitoring and adaptability are key. We should regularly
evaluate our progress, be open to adjusting strategies based on market dynamics, and stay agile
to navigate any challenges that may arise.

Recruiter: Well said! Thanks for walking us through your approach. It's been insightful, and
I'm sure our client would appreciate your strategic mindset.

CASE WITH HINT:

Your client is a mom-and-pop store owner. Recently, it has been experiencing a decline in its profits.
They want you to analyse the causes and recommend solutions that can result in a turnaround.

Hints:
 Knowing whether high costs or low revenues are causing the decline is crucial.
 To reduce numbers, attention must be paid to the customer journey.
 Decrease in patronage due to the infrequent metro trains and fewer parking spaces.
 Ensure that the business is adaptable to changing market conditions.
 Analyse fixed and variable costs to identify areas where expenses can be reduced
without compromising quality.
 Look for opportunities to renegotiate contracts with suppliers.
 To keep your current clientele, think about introducing loyalty programmes. Reward
loyal customers with exclusive discounts, promotions, or other incentives.
 The problem is specific to the client and not to other mom-and-pop stores.