Business Growth

Satisfactory Essays
Analysing the different growth strategies, available for different entrepreneurial ventures will help entrepreneurial ventures to. I will be going into depth about the different ideas, and means that are available. Showing my understanding of the external and internal effects that they will have on each individual business, not only in terms of its growth but also on its targets and aims as a whole. I will ensure to compare the benefits and drawbacks of each strategy and highlight the importance of why they must be carefully chosen for each individual firm. Making sure to identify and analyse the main four growth strategies these being; product development, diversification. Market development and market penetration. Which all fall under Ansoff's matrix, a theory that helps to identify growth opportunities. Source: This topic is essential as it will allow for the entrepreneurs to achieve and sustain growth, not only this but in an efficient manner. One of the most important reasons for a business strategy is that they help organise a business and jump some of the first hurdles that every business will go through, for example the fact that 50% of businesses close within four years. (CITE) Growth strategies are incredibly important for entrepreneurial ventures as growth and are essential for longevity of any business, especially new and smaller businesses, as if they do not grow, they will eventually decline and fail. They are also about using the business to improve the benefits for its customers and creating value. The main idea of a business strategy is to achieve the goals and objectives of the company. Some of these could be to increase market share, increase turnover,... ... middle of paper ... share of the market as Taobao did. Showing that this strategy is effective for specific business and in this case not for eBay. Product development is another part of the Ansoff matrix. Product development is a strategy for enhancing benefits you deliver to customers by improving your existing products and services or developing new ones. The new product development process is a model that entrepreneurs use to help themselves to simplify product development and create an easier scale for them to follow. Source: Product development is good to use for entrepreneurial ventures as there is only moderate risk, this due to the product already being known to be popular, however just not among a the city or country that the entrepreneur may be trying to break into.
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