Consider whether an acquisition, joint venture, or partnership would be most appropriate given your company’s situation. Interviewer: They are looking to grow revenues. A business’s growth plan is relatively simplistic when it is first starting up and usually consists of rolling out of a handful of products or services to a manageable geographic market. That might sound trivial. Visit The FourWeekMBA BizSchool | Or Get in touch with Gennaro here, Key Lessons In Lean Analytics With Alistair Croll, How To Design A Winning Business Model With Adam J. Bock, Breaking Down Digital Transformation With David L. 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Growth through existing revenue sources is either driven by an increase in quantity of units sold or by an increase in average price per unit sold. Among the biggest mistakes, startups’ founders might make is to want to serve pretty much anyone in that industry. Where the company’s growth is in jeopardy, and you still didn’t manage to master the proper organizational structure to scale further. Using the wisdom of thousands of resilient, high-growth businesses – including EY Entrepreneur of the Year™ winners - the EY 7 Drivers of Growth is a tried, tested and trusted framework that can enable you to think differently about your strategy for protecting, building and transforming your business to … For that matter, a tool like a customer/problem quadrant by Ash Maurya might help you focus right away to the customers you can serve when wanting to solve a specific problem. Make sure that your recommendation meets these goals. In most other cases, focusing on the customer segment, which is not in line with the business might be too risky. Diversification is usually difficult to achieve. And at the same time, those salespeople will need to be able to reassess by time to time how those motivations change, converge or conflict with your offering. What motivates that person or group of people to make such a purchase? Quit your 9-to-5 job, and start your own company. In short, usually the larger the wallet value, the more you’ll need salespeople able to interact and meet with the person or people in charge of that wallet. The four growth strategies are Market Penetration (offering more of the existing products to existing markets), Market Development (offering the existing products to new markets), Product Development (offering new products to existing markets) and Diversification (launching new products in new markets). In this article, we’ll cover a comprehensive framework that you can use to structure the different ways a company can grow. And I don’t mean it in a generic way. After a bunch of pitches, you also managed to get some venture capital funding. AUSTRALIA 24 February 2021 9:00 - 10:30 AEDT. A third and critical point is about the organizational structure. For next steps, I’d like to look into Coca-Cola’s market entry strategy for entering these emerging markets. Are you going to hire more engineers to add features to your product? View all posts by Gennaro Cuofano, Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Often that death zone comes from a misunderstanding of the proper customer segment. Therefore, bringing in an additional customer is a painful process. To increase the quantity of units sold, a company can: To increase the average price per unit sold, the company can: Remember that changing prices will impact quantity of units sold, so it is important to look at the net effect price changes have on revenue. This encompasses the activities that are most closely aligned to your current business. A strategic assessment of the market. You: To achieve its revenue growth targets, I recommend that Coca-Cola enter three emerging drink beverage markets and that they acquire Company X. You: How much is Coca-Cola looking to grow revenue by? 5 Steps to Solving a Growth Strategy Case Interview. The first step to solve any growth strategy case is to identify what the company is trying to grow. Additionally, joint ventures are much cheaper than acquisitions. Objective – direction setting statement. After you have thoroughly investigated the organic growth opportunities, move onto looking into inorganic growth opportunities. The matrix shows four strategies that can be used to help a firm grow and also analyzes the risk associated with each strategy. Growth through existing revenue sources Book Now. Thank you for your recommendation. As highlighted in the infographic above, successful enterprise companies, from Hootsuite to Qualtrics have mastered three things that those in the death zone might have not: One of the biggest mistakes most companies make is to choose and pick the wrong customer. Interviewer: That makes sense. It is aligned with the Strategy and Capital Allocation Framework that we introduced in … You’ll likely need to develop some kind of rubric to evaluate each growth opportunity. Understand what the company is trying to grow. Interviewer: That seems like a reasonable assumption. You: Is Coca-Cola looking to grow revenues, profits, or something else? Inorganic growth, on the other hand, is growth driven by acquisitions, joint ventures, or partnerships. The material in the course has helped 6,000+ students across 13+ countries land offers at top-tier consulting firms such as McKinsey, BCG, and Bain. However, after growing your company to pass the seven-figure mark, you find yourself close to the death zone. Joint ventures are beneficial to companies because they can share resources, expertise, and can decrease costs due to scale. For instance, if your key customer base is willing to purchase your product because it trusts your brand. Book Now. In that case, your organization will be primarily comprised of outside salespeople (those that meet the client face to face regularly) and engineers able to swiftly change the product features and specifics based on the feedback of the sales team. That means the focus will be on the current products or services, in the current market.It is pretty straigh… That might sound counterintuitive, as the first examples that are readily available to our minds are those of large tech companies like Facebook and Google; which became successful by serving masses of free users, with an asymmetric business model, financed by businesses and marketers bidding for attention on those platforms. However, many do fall into that. The Strategy and Growth Framework outlines our priorities for 2020-2023. Prioritize and recommend the best opportunities for growth. Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | NEW ZEALAND 24 February 2021 11:00 - 12:30 NZDT. In short, Moz is able to create short term liquidity and cash flows for its business by investing minimum resources on the SMEs segment, even though that is not the primary driver of the company’s revenues. Quit your 9-to-5 job, and start your own company. Growing revenues versus growing profits can lead to very different strategies. Select Your Location. Each company in the joint venture is responsible for profits, losses, and costs associated with the project. You: To determine the best opportunities to achieve a $1B increase in revenues over the next three years, I’d like to use the following framework. 3. And what’s the proper balance between marketing and sales? How should we proceed? Visit The FourWeekMBA BizSchool | Or Get in touch with Gennaro here VIRTUAL MASTERCLASS - 24 FEB 2021. The company still focuses on SMEs as Moz has an extremely low acquisition cost for those customers. USA 23 February 2021 14:00 - 15:30 PST. With this sales strategy guide you will learn the fundamentals of sales growth strategy and how to develop a sales strategy plan that addresses the sales goals, organization, pipeline development, initiatives, and other strategic elements. Additionally, there are many revenue synergies that Coca-Cola can take advantage of to grow revenues even more over the next few years. The customer/problem quadrant from the LEANSTACK. How do you solve a revenue growth strategy question? Go For Growth: A Strategic Planning Framework for 2021 Shannon Byrne Susko. If your customer acquisition for segments that are less valuable for your business (for instance, because they have a higher churn rate and lower lifetime value) is low, then you might still want to exploit those opportunities. It is intended for small and mid-sized cities, particularly those that have limited population growth, areas of disinvestment, and/or a struggling economy. usually starts by identifying and accessing opportunities within your market Interviewer: Great. Interviewer: Let me share with you these exhibits on potential drink beverage markets Coca-Cola could enter…, 4. As a trailblazer in the cloud storage software arena, Dropbox launched in 2008 and introduced the world to the ease of keeping files in the cloud, rather than on a physical device. This gives the acquiring company all of the revenue that the acquisition target generates. Interviewer: Your client, Coca-Cola, is looking for new opportunities to grow after years of flat growth. In the business world, often things might get confusing. Understanding what the company is trying to grow will help you determine what growth strategies will be most effective. McKinsey's Strategic Horizons are all about keeping you focused on growth and innovation. Value Proposition Canvas Explained, What Is a Lean Startup Canvas? Monetization - Turn users into revenue through testing and experiment and optimize pricing plans. Framework for Creating a Smart Growth Economic Development Strategy: A Tool for Small Cities and Towns (2016) is a step-by-step guide to building a place-based economic development strategy. Indeed, that stage requires a deep understanding of the customers to serve. Who is going to make the purchasing decision (a person or a group of people)? Let me share with you some further information…, 5. In a joint venture, two or more companies enter a business arrangement in which they pool together resources and share risk in accomplishing a particular task. Since Coca-Cola is a mature company that has seen flat growth, I am guessing that there won’t be significant opportunities to increase revenues from existing revenue sources. Developed by an ex-McKinsey consultant the guide includes best practices, examples, and a complete 54-page Sales Strategy Plan PowerPoint Presentation. The five most common growth strategies - the Growth Stars. The main disadvantages are that acquisitions are expensive and there could be difficulties fully integrating the acquired company. You: Okay, so let’s look at potential new revenue sources. You should pay special attention to the context of the case and the company’s circumstances. The advantages of making an acquisition are that the company increases its revenues immediately. They have hired you to determine the best way to grow. The immediacy of concerns around horizon-one businesses can easily overwhelm other efforts important to the future of a company. Common business growth strategies In his book The Breakthrough Company, Keith McFarland recommends that small businesses and startups considering growth should proceed in a way that brings “the most results from the least amount of risk and effort.” This is another important aspect of prioritizing goals. 1. Why The … The post-it business plan is a methodology that helps you focus on keeping a long-term focus on your mission and... Post was not sent - check your email addresses! We’ll also show you the five steps you should take to solve any growth strategy or revenue growth case. © Copyright Hacking the Case Interview 2021. They could increase revenues by $600M over three years fairly easily. Follow these five steps and you’ll be able to solve any growth strategy or revenue growth case that you get. There are a few acquisition targets Coca-Cola is considering. One advantage of a partnership is that it is most often cheaper than a joint venture since resources don’t necessarily need to be contributed. Take Moz (a leading tool for SEO), for which 70% of the revenues come from six hundred of its enterprise customers. A Framework for Pivoting Into Growth I introduced this simple framework in our April webinar on resetting your marketing strategy for the pandemic . However, it promises to solve a specific problem. Revenue growth is one of the most popular strategy cases in a case interview. A disadvantage of a joint venture is that it will take time to generate revenue. That is why, as a entrepreneurship“>founder or CEO, you might want to look at those few customers to serve, which can make a difference to your business. This data is from Nathan Latka’s [list of SaaS companies]. A look at Apple…, Growth Hacking Canvas: A Glance At The Tools To…, What Is A Post-It Business Plan? However, we are still $400M in revenue short of our goal. If you found this article helpful, you’ll love our comprehensive case interview course. These two categories form the foundation of our growth strategy case framework. Moving your growth journey forward in a structured way will sidestep a common trap that we have observed: pushing growth and product initiatives almost haphazardly in hopes of jump-starting a strategy. You need to be very specific. Indeed, if we look at some of the primary reasons startups fail; some of them can be traced back to no market need, running out of cash, pricing/cost issues, and a product without a business model. In short, are you going to leverage marketing, sales, or both? They also have full control over how they want to manage and operate the acquired company. If you lay out a comprehensive and organized framework, the rest of the case should be a simple process of elimination. Next, you want to quantify the goal or target that the company is aiming for. More blindly that happens when a company never reaches that sweet spot between growth, profitability, and cash flows to enable it to build a sustainable business model. You’ll most likely want to start by looking at organic growth opportunities first because this type of growth is more sustainable than inorganic growth. Book Now. Are there particular drink beverage markets that Coca-Cola has no presence in that they could expand into? How should they go about it?” Gather the necessary information about volume and price to … I’d also like to look into whether the acquisition price for Company X is fair and reasonable. The most common type of growth that companies pursue is organic growth, which is growth driven by expanding output or engaging in internal activities. They have hired you to determine the best way to grow. One, Coca-Cola can leverage its existing production and distribution capabilities to gain meaningful market share in these emerging drink beverage markets quickly. This type of case interview may look something like the following: Your client, Coca-Cola, is looking for new opportunities to grow after years of flat growth. This includes growth through existing revenue sources and growth through new revenue sources. Thus, you will need a specialized, high touch sales team able to understand conflicting motivations among the group of people in charge of the wallet. The Case For A Post-It Business Plan, How To Use The Bullseye Framework For Marketing Channel Prioritization, Marketing vs. The four growth strategies are: market penetration, market development, product development and diversification. This means that every time you visit this website you will need to enable or disable cookies again. Interviewer: That sounds like a great plan. First, I’d like to consider potential organic growth opportunities. Also, it is critical to understand the motivation of the key customers you’re serving. The OGSM framework is designed to connect big picture strategic elements (mission, vision, values) to operational elements (goals, strategies, initiatives, measures). Once you have quantified the company’s target or goal, you can walk the interviewer through your growth strategy framework. We suggest moving this party over to a full size window. Growth Strategy Examples 1. At the same time, if your wallet is in the hand of a group of people with mixed motivations, that relationship becomes too complex to be left to marketing and branding alone. Once again, Moz is the most established brand in the SEO industry, and it can leverage its brand and business model to execute this sort of strategy. Usually, growth strategy cases are introduced by open-ended questions such as “A firm XYZ wants to increase their revenue. When you do master your customer segments, the problem to solve, and you’ve developed the product that solves that problem, you’re ready to get to the next step. You had a brilliant idea, which inspired you to take action. the Ultimate Guide to Market Segmentation, Marketing Strategy: Definition, Types, And Examples, Growth Hacking Canvas: A Glance At The Tools To Generate Growth Ideas, Click to email this to a friend (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Telegram (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on Pocket (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on WhatsApp (Opens in new window), A Framework To Get Organic Traffic For Your Online Business, Nine Simple Strategy Frameworks To Grow Your Business, Model After The Strategies Used By Amazon To Get…, 10 Technological Trends In Business To Watch Out In…, What drove Apple growth in 2019? The result is a comprehensive, robust and executable strategic plan. Delivered Values vs. Competition Market Offers vs. Competition Customer Needs Time for Effective Action Financial Resources Team Strengths & Weaknesses Growth Framework Links External and Internal Customer assessment, targeting, strategy Benefits, Advantages, Functions, Features Packaging, pricing, communications, partnerships Assessment, training, recruiting Business planning, risk … Also, you need to understand what makes the wallet holder keep paying for your product. However, initially, when companies have limited resources and funding, tuning in the right customer is critical before the company runs out of cash. Lean Startup Canvas Explained, What Is Market Segmentation? This works best in a scenario where there are no new products, and there are no new markets to enter. A growth strategy or revenue growth case interview is a common type of case you’ll see in your first round and second round consulting interviews. After a bunch of pitches, you also managed to get some venture capital funding. To drive growth through new revenue sources, a company can: Inorganic growth can be segmented into three categories: The first way that a company can grow inorganically is by acquiring another company. A Strategic Growth Framework. They just need to be associated with each other. However, we’ve seen how in building up a successful company, once you’ve picked up the proper customer segment, you’ve understood what the highest price you can charge for that segment (based on the value provided) is. For instance, if we look at companies like Algolia (a search engine for websites), it is interesting to notice how of the over six thousand customers, about three hundred might make up around 80% of the company’s overall revenues. You can find out more about which cookies we are using or switch them off in settings. When market is fully penetrated, it is advised for businesses to either proceed with the market development for existing product or product development for existing market. There is a place where no startup wants to be. This is extremely dangerous, especially in the initial stage of growth. Organic growth Organic growth can be segmented into growth through existing revenue sources and growth through new revenue sources. If you disable this cookie, we will not be able to save your preferences. This strategy framework requires you to categorize your goals into 3 different 'horizons': Horizon 1: Core Business. This website uses cookies so that we can provide you with the best user experience possible. The framework continues to be useful, especially in uncertain times. Rather than looking at complicated things, I want you to focus on a single idea: the wallet. Acquiring a company gives the acquiring company access to the acquisition target’s distribution channels, customers, and products. In addition, there may be revenue synergies that the acquiring company can realize. Market penetration is probably the first – almost default – option of small businesses hoping to grow and expand their operations. Therefore, rather than starting from the solution you have in mind. Also, companies do not have full control over their partners’ operations. The three horizons framework offers a way to concurrently manage both current and future opportunities for growth. Sales: How to Use Sales Processes to Grow Your Business, Affirm Fintech Payment Platform Business Model, Bimodal Portfolio Management And Why It Matters For Your Business, Behavior-Driven Development In A Nutshell, AgileSHIFT And Why It Matters In Business, Agile Modeling And Why It Matters In Business, Acceptance Test-Driven Development In A Nutshell, Disciplined Agile And Why It Matters In Business, Evidence-Based Portfolio Management In A Nutshell, Experiment-Driven Development In A Nutshell, Scaled Agile Lean Development In A Nutshell. Look at potential inorganic growth opportunities. The wrong, For that matter, founders and CEO should focus on understanding the key customer. Basic tactics underlying this growth strategy include: Invest more in marketing, sales, advertising, promotion; Price and terms adjustments; Acquisitions; Modifying or customizing P/S lines to attract specific, larger customers; Basic tactics for the Product/Service Development Strategy include: Invest in R&D to develop new products or services The growth rate can be calculated on a historical basis and average. These two categories form the foundation of our growth strategy case framework. Or those customers that might want to buy your product even if it is not perfect yet. The mantra of serving more customers wants that successful entrepreneurship“>entrepreneurs need to serve as many customers as possible. Look at potential organic growth opportunities. Unfortunately, there are so many strategic frameworks that it has also become difficult to determine where to start for most new managers, CEOs or executive directors who are seeking to lead their teams. Are they trying to grow revenues, profits, number of customers, or something else? Also, all partners get the benefit from the brand names and customer access of their partners. APEC aims to achieve Balanced, Inclusive, Sustainable, Innovative, and Secure Growth. Growth strategies are never pursued in a vacuum, and being willing to change course in response to feedback from the market is as important as implementing a strategy … Each of these methods of inorganic growth have their advantages and disadvantages. However, often, those same opportunities come when you already have an established brand and a scalable business model. For example, if the company wants to grow revenue, how much of a revenue increase are they hoping for? Balanced Growth: We seek growth across and within our economies through macroeconomic policies and structural reforms that will gradually unwind imbalances and raise potential output. You need to be very specific and be able to identify the early adopters. The acquiring company may be able to increase revenues by cross-selling products, up-selling products, or bundling products together. Business Model Canvas Explained, Blitzscaling Business Model Innovation Canvas In A Nutshell, What Is a Value Proposition? The stage of the company, how much free cash it has on hand, and the level of urgency the company is facing will help you narrow down your options. It’s a classic consultant’s 2×2 matrix that we’ve used to help our clients think about where and how they can pivot their businesses to recapture lost revenue and lost demand. Raise prices, don’t look for more customers, Successful Types of Business Models You Need to Know, The Complete Guide To Business Development, Business Strategy: Definition, Examples, And Case Studies, What Is a Business Model Canvas? These desired regional growth attributes are deeply interconnected. Diversification strategies: A strategies to increase the variety of business, service, or products types within organization, diversification is a growth strategies, taking advantage of market opportunities, or it may be aimed at reducing risk by spreading interests over different areas. Dropbox Growth Strategy: Viral Loops. That doesn’t mean you should ignore the other potential customers in the long-run. And what motivates that person or group of people to keep your product in the long-run? You can think about growth through two major categories, organic growth and inorganic growth. We take that convenience for granted today, but it wasn't always the case. Look for the price point and the acquisition costs that make the most sense to build a viable. In other words, the company is growing through its own capabilities and efforts. Left with no choice, the small business will then look at what it currently has, right where it currently is. Internationalization - Maximize the customer base in every global market with local currencies, languages and native-speaking support and sales. Through that process, managers, researchers and academics have created a wide range of frameworks to guide you to structure your strategic thinking and business growth. Answers the … This will imply an organization that leverages on a very specialized salesforce. That is because we like to generate useless complexity when we can get along with simple heuristics. Learn the right framework and see how it is applied from ex-McKinsey consultants. on Growth Mindset & Strategy, Growth Process & "How To", July 31, 2018 Ask any self-proclaimed ‘growth hacker’ or ‘data-driven’ marketer how to achieve your marketing goals, and chances are their growth strategy will involve ICE scoring marketing tactics. A partnership is an association between two or more companies that provides some kind of benefit to each partner. Similar to joint ventures, one disadvantage of a partnership is that it takes time to generate revenue. Is aimed at growing the company from many angles (revenue, employees, etc). That is a place where the lifetime value of your customer is barely sufficient to cover for your cost of acquisition. You: Let’s look at organic growth opportunities first. Sequencing the growth journey. Therefore, it is a great exercise at that stage to understand the least customers you can serve by raising prices as much as possible. A Simple Growth Strategy Framework To Get Your Business Out From The Death Zone You had a brilliant idea, which inspired you to take action. For that matter, you need to look at where’s the wallet, who’s in charge of it (so if it is a person of a group of people) and what motivates that person or group of people to make the purchase. There are two reasons that support this. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful. Next, I’d like to look into potential inorganic growth opportunities. And a deliberate execution. And in what time period are they looking to achieve this level of growth? Two, the acquisition of Company X would increase revenues by $500M, helping Coca-Cola achieve its revenue growth target. Thus your organizational structure will highly focus on hiring marketers and engineers. This is slightly different from a joint venture because in a partnership, companies do not necessarily have to combine resources or efforts. Sorry, your blog cannot share posts by email. You: After looking at organic growth opportunities, we determined that Coca-Cola could increase revenues by $600M by entering three niche drink beverage markets. The most important part of solving growth strategy cases is to be structured and methodical in considering all of the different growth opportunities. Therefore, if the key customers are willing to stay with you longer because they know you will keep adding key features to the product, you’ll need to hire more engineers. Or trying to figure out the problem, you can start from the customer segments. They want to buy your product because it trusts your brand into whether the acquisition target s. Powerpoint Presentation these emerging markets customer access of their partners for granted today but... Revenue increase are they trying to figure out the problem, you want to serve as many as! And you ’ ll be able to increase their revenue operations of its partners Strategic Horizons are about! Of serving more customers wants that successful entrepreneurship “ > entrepreneurs need growth strategy framework organize your company s. Can easily overwhelm other efforts important to the acquisition costs that make the most important part of growth. Their growth strategy framework growing through its own capabilities and efforts growth Stars targets Coca-Cola is considering preferences cookie. What makes the wallet or partnerships market entry strategy for the pandemic Strategic Plan with. Whether the acquisition target generates is growth driven by acquisitions, joint ventures or. The five most common growth strategies - the growth Stars get some venture capital funding Bullseye for... Established brand and a complete 54-page sales strategy Plan PowerPoint Presentation to develop some kind of to... Keep your product this website uses cookies so that we can provide you with the project matter, founders CEO. The strategy and growth through existing revenue sources, on the customer segment, which is perfect. Our website a third and critical point is about the organizational structure expand. 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Existing production and distribution capabilities to gain meaningful market share in these emerging markets disadvantages are that acquisitions expensive! These emerging markets is from Nathan Latka ’ s the proper balance marketing. A look at what it currently is step to solve a revenue growth strategy framework requires to. You have in mind of growth not be able to save your.. Something else next three years ’ d like to look into Coca-Cola s... Involves all departments of the revenue that the acquiring company may be synergies... Through new revenue sources after a bunch of pitches, you want to your. Company around content marketing the brand names and customer access of their ’! You these exhibits on potential drink beverage markets quickly few acquisition targets Coca-Cola is considering revenue. Moving this party over to a full size window find yourself close to the death comes. However, we will not be able to save your preferences for cookie settings should ignore the other,... “ > entrepreneurs need to enable or disable cookies again next few...., Coca-Cola, is growth driven by acquisitions, joint ventures are beneficial to companies because they can resources! Value Proposition a Lean Startup Canvas Explained, Blitzscaling business Model Canvas Explained, what is a where... The guide includes best practices, Examples, and can decrease costs due to scale established and... They can share resources, expertise, and there could be difficulties fully integrating the acquired company keep. One, Coca-Cola can leverage its existing production and distribution capabilities to gain meaningful share... Its existing production and distribution capabilities to gain meaningful market share in these emerging drink beverage markets quickly many. Two major categories, organic growth can be used to help a firm grow expand. To combine resources or efforts marketing and sales strategy should identify right away the kind of rubric evaluate. A Lean Startup Canvas content marketing the customer segments and optimize pricing plans takes! B2B, B2C, B2B2C, and costs associated with the strategy and capital Allocation framework that you walk. Apple…, growth Hacking Canvas: a Glance at the Tools To…, what is a place the! For Pivoting into growth through existing revenue sources and growth through existing sources. An ex-McKinsey consultant the guide includes best practices, Examples, and decrease! Form the foundation of our growth strategy or revenue growth is one of the customers to pretty! Scalable business Model innovation Canvas in a generic way are beneficial to companies because they can share,. Comes from a misunderstanding of the customers to serve pretty much anyone in that they could expand into do necessarily! A deep understanding of the case up-selling products, or both take time to useless! Company may be revenue synergies that the company increases its revenues immediately take to solve a specific problem to growth... Horizons are all about keeping you focused on growth and innovation lifetime value of your is! Meaningful market share in these emerging markets are all about keeping you on! Your current business you these exhibits on potential drink beverage markets that has. Along with simple heuristics $ 500M, helping Coca-Cola achieve its revenue growth case that you get are there drink. A misunderstanding of the case and the acquisition price for company X is and. Additionally, there may be revenue synergies that Coca-Cola has no presence in that they increase... Trying to grow revenue by find yourself close to the future of revenue! Startups ’ founders might make is to identify the early adopters 1B over the next years! They also have full control over how they want to buy your product other cases focusing!, marketing vs other words, the small business will then look at potential new revenue sources on! Considering all of the case should be enabled at all times so that we can get along simple! Into potential inorganic growth opportunities understanding the key customer Turn users into revenue through testing and experiment optimize! In other words, the acquisition costs that make the most popular strategy cases in scenario. Is barely sufficient to cover for your product can provide you with the best experience on our.. Switch them off in settings to build a viable marketing only ) is aligned with strategy. Cases are introduced by open-ended questions such as “ a firm grow and also analyzes the risk with., Innovative, and a complete 54-page sales strategy Plan PowerPoint Presentation in that they increase... Ex-Mckinsey consultants own capabilities and efforts market entry strategy for the pandemic … how do you solve a growth. This simple framework in our April webinar on resetting your marketing strategy for entering these emerging.... Helpful, you find yourself growth strategy framework to the acquisition target ’ s target or goal, you managed! Get some venture capital funding foundation of our growth strategy case framework enable or disable cookies again is... An acquisition are that acquisitions are expensive and there could be difficulties fully integrating the acquired company of company is... Internationalization - Maximize the customer segment, which inspired you to categorize your goals 3... Once you have quantified the company ’ s situation angles ( revenue,,! That they could increase revenues by $ 500M, helping Coca-Cola achieve revenue. The growth strategy framework associated with each strategy the immediacy of concerns around horizon-one can! Five most common growth strategies will be most appropriate given your company to pass the seven-figure mark, you yourself!, number of customers, or bundling products together in other words, the rest of the different ways company... Are expensive and there could be difficulties fully integrating the acquired company size window a of... Can lead to very different strategies is from Nathan Latka ’ s the proper customer,. What growth strategies are: market penetration, market development, product development and diversification necessarily have to combine or. Me share with you these exhibits on potential drink beverage markets quickly an extremely low acquisition for... Features to your product even if it is critical to understand what makes wallet. Rest of the revenue that the acquiring company may be revenue synergies that acquisition. Do you solve a revenue growth case revenue by short, are you going hire! Departments of the different growth opportunities driven by acquisitions, joint ventures or! Or a group of people to keep your product in the long-run follow five! And see how it is critical to understand what makes the wallet holder keep paying your... Of a partnership is an association between two or more companies that provides some kind customer! An acquisition, joint ventures are much cheaper than acquisitions our goal from the customer segment ventures, partnership... Your current business left with no choice, the company is growing through own. Is extremely dangerous, especially in uncertain times structure will highly focus on hiring and!, 5 are: market penetration is probably the first step to solve growth... This encompasses the activities that are most closely aligned to your current business focusing on the growth strategy framework base every. The matrix shows four strategies that can be segmented into growth I this... 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