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Strategies and their Significance for Business Growth and the Success of New Businesses
Thesis Statement:
The intent of this paper is to unveil the meaning and value of growth strategies or models in new businesses as well as to provide an in-depth study of their significance as it pertain to new business growth success.
Introduction:
There is a fundamental difference from corporate management, which is focused on the plans of operation, and the venture-building process management that is customer or technology centric. The success or failure of a venture is dependent upon the ability of the entrepreneur to "identify emerging attractive markets and to seize on unmet, unserved customer needs."
Different Growth Stages in Venture Management
There are different stages of venture growth, which requires different approaches to management of the venture. The following are four stages with the accompanying factors and elements applicable to that stage of growth as described by Philip Kotler in his Marketing Management, 12th edition book:
Start Up: During this stage the product, market niche and business concept is defined.
Growth: During this stage it is hoped that the business will capture a market share, launch differentiated products, gain repeat customers, expand channels and avenues, expand the management team and train employees and start inventing the second stage of growth for the venture.
Expansion: During this stage of growth activity is inclusive of upgrade in differentiation and competitive strategies, building of management team and empowering of employees, broadening of lines, extending of geographic area coverage, injection of relentless growth attitud ...