Business growth is ultimately pursued by acquiring more customers or convincing existing customers to pay more for your services. Although very simplistic this statement helps simplifying the approach to growth strategy. In our view the four components of a an effective growth strategy are product/service, market place , operations and customer engagement.
Product and service is the core of the value proposition and particularly for rapid change industry is also the core of your growth strategy but not necessarily the only lever of growth and not the only playground for innovation. As mentioned in our job-to-done section selecting your competitive terrain and identifying the mind of ecosystem is crucial to understand and plan your approach to market place.
There are no great limits to growth because there are no limits of human intelligence, imagination, and wonder.
Innovating in operation is crucial to achieve growth and capital equity appreciation. Operations are key to several areas of business such as sales, customer support and provisioning. Any friction point in these functional areas will slow your sales, increase provisioning times and skyrocket costs of support. Ultimately not only, inadequate operation reduce your balance sheet gross margins but also considerably slow growth.
Although not immediately apparent; you can sustain your growth strategy by innovating along the chain of consumption for your product or service. This is particularly through in established markets such as the hotel and lodging industry. For example, think at how the start up Airbnb has disrupted the experience of booking a lodging making it easy, mobile, reliable and ultimately cheap. However, this concept holds true in rapidly changing industries. Particularly arenas in which products and services are delivered through the internet. For example, consider the case of Uberconference, and audio conferencing solution provider, that gained 4 millions user in the first 2 years of operation. At its essence the service provided by Uberconference is 40 years old, but the customer experience an the patterns for the customers to discover, try and adopt the product are new and in synch with the new user patterns for mobile products. This re-invented symphonies between your service and the ever-changing customers habit give Uber and edge for growth. We describe more cases and concepts in our University section.