Growth phase strategy
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| Growth phase strategy |
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Product placement phase is followed by intense market growth after the product will is welcomed by the customers. This phase is characterized by a high capital expenditure, although relatively smaller than in the development phase. Therefore, there are proposed different strategies for enterprises with different competitive position.
Improving sales in growth phase
To increase product sales during the growth phase, companies can employ a variety of strategies such as:
- Expanding distribution channels: This includes reaching out to new markets and making the product available through more retailers or online platforms.
- Increasing marketing and advertising efforts: This can help to build brand awareness and drive demand for the product.
- Launching new product variations or versions: This can help to keep the product line fresh and attract new customers.
- Building partnerships and collaborations: This can help to expand the reach of the product and tap into new customer bases.
- Improving customer service and support: This can help to build customer loyalty and encourage repeat purchases.
- Investing in research and development: This can help to improve the product and keep it competitive in the market.
Ultimately, the specific strategy will depend on the product, the target market, and the competitive landscape.
Proposed actions
The dominant competitive position
- maintain position and market share
- invest to sustain growth
Strong competitive position
Average competitive position
- try to improve market position, selective increase market share
- selective investment in order to improve situation
Favourable competitive position
- look for niche and protect it
- selectively invest
Weak competitive position
- development or withdrawal
- investment or disposal
References
- Pelham, A. M. (2015). Strategy, Market Orientation, or Environment: Relative Influence on Small Manufacturing Firms. In Proceedings of the 1998 Academy of Marketing Science (AMS) Annual Conference (p. 458-458). Springer International Publishing.
