Growth phase strategy

Growth phase strategy
See also
Maturity phase strategy Market maturity Market placing phase strategy Decline phase strategy Market expansion Competitive position Imitator strategy Horizontal diversification strategy SPACE method

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.

Proposed actions

The dominant competitive position

• maintain position and market share
• invest to sustain growth

Strong competitive position

• try to improve market position and increase market share
• invest to increase growth

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.