Alternatives for Business Growth

Alternatives for Business Growth

There are various business alternatives available to Target Company for growth. These can be discussed as below:

Innovation: The Company should invest its efforts in innovative strategies to ensure more growth of its business across the world. For example, by differentiating in product offerings, company can increase its sales and revenues that are vital for business growth in future.

Market Development: Company should also explore new and promising markets for its business growth. It will help it to capitalize the global opportunities offered by these growing markets (Smit, Brevis, Cronje, Vrba & Smit, 2007). For example, economic conditions of Asian countries are growing at pace, so Target Company has the option to open its stores in these global marketplace.

Diversification: Company can also adopt diversification strategy as an alternative for business growth. In this, company can choose new product in new market. It will also assist the company to grab new customer base with new expectations.

Best Value Discipline

Under best value discipline, value of money is given to the customers either by offering average products at below average prices or above average products at average pricing (Miltenburg, 2005). Target Company can adopt second option by offering its above average products at average pricing through using its capabilities and skills. By doing so, the company could offer high quality products at low price to customers that are offered at high price by the rival firms in the same segment.

Generic Strategy

There are mainly three forms of generic strategies that are cost leadership, differentiation and focus strategy (lower cost/differentiation). Cost leadership is not applicable, as company is already giving more on less to the customers (Target, 2012). The company can also choose focus strategy either by focusing over lower cost or differentiation in one area. Out of these strategies, focus differentiation would be the best strategy. It is so, as by making focus differentiation in one narrow segment like niche market, the company could expand its business in the global marketplace. It will help in increasing the growth of Target Company business.

Grand Strategy

There are four grand strategies that are stability, expansion, retrenchment and combinations strategy. By considering the available alternatives for business growth of Target Company, following grand strategy would be best:

Combination strategy: Under this strategy, mix of two or more grand strategies is followed to attain the growth of business in the market. For Target Company, combination of stability and expansion strategies would be best (Smit, Brevis, Cronje, Vrba & Smit, 2007). It is so, as these strategies