Innovation and Entrepreneurship
What does it take to grow a business at double digit growth over many, many years?
Irrespective of economic conditions, continuous double-digit growth over many years is possible. There are five growth pathways one or more of which a company can take to accomplish radical growth. These five growth pathways are:
Keeping the company's existing customers
"Stealing" market share from competitors
Knowing the industry the company is operating in and anticipating its development and developments within the industry early
Venturing into neighbouring markets if the opportunity presents itself meaning if the core capabilities exist within the company and the time is right
Entering into a completely new sector or non-connected industry
Although it is possible to concentrate on just one of these growth pathways, it is recommended that a combination of these pathways is best to achieve consistent radical growth. One possible tool to determine which pathways offer the greatest growth potential is the Sources of Revenue Statement that provides the company with valuable information as to the proportion of growth each pathway currently generates.
This information can then be used to tailor-make a growth strategy suitable for the company concerned.
Several ways can be employed to grow in one or more of the five pathways and a company with incessant double-digit growth excels in more than one of these pathways. As has previously been ascertained in the case of the five growth pathways above, employing a combination of these ways or "methods" will yield the best results for a company. Which particular combination is best for a company depends on the company and the markets it operates in.
Innovation and creativity, that usually go hand in hand, are crucial elements if a company wants to accomplish continuous double-digit growth. Thinking outside...