Posts Tagged ‘Growth strategy’
Growth sounds attractive but do not forget what the consequences, some positive and others less so. When a company ceases to be a girl, the number of staff, and with it the problems of teamwork, motivation and communication. Besides the processes become more complex and the management is very different from the beginning. So often, companies choose not crecer.El entrepreneur does not conform to start a business that is profitable, there comes a time when looking to expand. But what is the right time to do, is the question that must be answered properly, to avoid the mistake of doing the wrong time.
However, a growth strategy and planning can ensure the survival of a long-term business and profit that would not otherwise, as different forms of financing, retain highly qualified staff, etc..
It is easy to grow, and it is the result of circumstances or by choice, is to be adapted to many changes that if not done with proper planning and study of the situation, would lead to failure.
The first thing to ask is whether it is the right time to expand, the market is shrinking or growing, I have resources to do so, I have the ability to support structural change. Then we going to do, ie, expanding the product line, through franchising, opening new branches or exporting.
• Expansion of product line:
Through this strategy we offer our customers a new option. This can be in different ways: by adding a product to our line with the same brand that is already known and has prestige. Another way is creating a new product with another brand aimed at another market segment (cheaper or more expensive) and so monopolize the market segments. This decision may arise as a result of the economic situation of the country or face new competitors.
This form of expansion allows further growth without using many resources. The company (franchisor) grants to another (the franchisee) the rights to the trademark and know-how and business benefit of having a proven, successful and prestigious. The franchisee is the one who provides the financial resources and thereby enables the franchisor to grow with third party capital.