How can a business develop strategies for growing and downsizing
Business strategies are necessary for business growth as well as when the business is downsizing. There are several strategies that a business can employ, such as market penetration which aims to increase the sales of existing products and also gain a market customer base. Secondly, a business can employ market development, which involves market expansion by analyzing how a company's existing offers are sold in new markets or how to grow the existing market. Different customer segments can accomplish this; industrial buyers for a good that the company previously sold only to the households; New areas or regions of the country; Foreign markets.
Thirdly, a business can use product development as another strategy. It involves extending the offer proposed to current customers to increase their turnover. These products may are launched by investment in research and development of additional products; acquisition of rights to produce someone else's product; buying in the product and branding it; Joint development with ownership of another company who needs access to the firm's distribution channels or brands. Lastly, the business can involve diversification by increasing the product base by introducing new products in existing and other new markets.