Planning for

Growth in the
Maturity Stage
YEAR 12 BUSINESS MANAGEMENT
N E L S O N Q C E B U S I N E S S PA G E S 2 0 - 2 6
A D A M S , S A L LY E T A L B U S I N E S S F O R Q C E U N I T S 3 & 4 D I V E R S I F I C A T I O N A N D E V O L U T I O N
NELSON CENGAGE PUBLISHING, SOUTH MELBOURNE VIC 2019
Key Learnings
You will learn about business growth through examining:
- strategic planning for growth
- the Ansoff matrix
- the difference between vertical and horizontal business growth
Planning for Growth
A business has reached the maturity stage:
1. when it has fully captured its target market
2. can no longer grow in its current state
3. Has it the peak of it’s market

Some possible effects of this include:

4. The revenue of the business can start to plateau
5. The revenue could even start to decline as competition grows, sales
decrease, operating costs increase, innovations arise and customer
demands change or evolve.

A business must engage in strategic planning to ensure it continues to

aim to achieve its overall aims.
Strategic Planning:
A long term view of where
the business is going and
how it will get there, typically
over the next two to five
years.
Goals and objectives
Some of the goals and objectives often identified by a business during
strategic planning in the maturity stage include:
- avoiding a state of decline
- increasing its share of the existing market
- entering a new market
- acquiring new sales and new customers
Strategy:
The means by which a
business sets out to achieve
it’s goals/objectives
Growth Strategy:
Specific strategy affecting
either new or existing
products and markets,
designed to increase the
overall market share of a
business
Vertical Growth:
The adaptation of business
products and services to
increase sales revenue from
the existing market
Horizontal Growth:
The replication or expansion
of a business product, service
or model into new markets
or industries
The Ansoff Matrix
First published by Harvard Business Review in 1957
Strategic planning tool used to help a business identify opportunities to
grow its revenue.
The growth stages are categorised into four main areas: market
penetration, market development, product development and
diversification.
Ansoff Matrix Example- Coca
Cola
1. Market Penetration
This strategy focuses on expanding
sales of existing products in the existing
market; for example, price drops,
marketing campaigns and increased
customer service.
2. Market Development
This product focuses on putting an
existing product into an entirely new
market; for example, opening a new
store in a new location or country, or
expanding to sell online as well as in a
physical location.
3. Product Development
This strategy focuses on introducing a
new product into the existing market;
for example, designing a new,
environmentally conscious product to
meet the changing needs of consumers.
4. Diversification
This strategy focuses on entering a new
market with a new product or service;
for example, expanding the scope of
the current business into an unrelated
market to widen the reach of goods and
services offered.