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Growth startegy vs Revenue Growth

How does these two scenarios vary? We will generally have organic and inorganic ways of growing or use Ansoff's growth matrix. Is there a clear distinction and should there be different approach for them?

How does these two scenarios vary? We will generally have organic and inorganic ways of growing or use Ansoff's growth matrix. Is there a clear distinction and should there be different approach for them?

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Hi!

In general, there are no strict guidelines and the interviewer may have both in mind. It's much more important when the question is being asked:

  • In the beginning of the case as the main objective
  • In the middle of the case as a question on creativity

In the beginning of the case I would use the following broad structure:

Analyze the market:

  • Size and growth rates
  • Segments (geographical, customer, product)
  • Distributors / Suppliers
  • Regulation
  • Key market trends

Analyze the competitors:

  • Market shares, growth rates, profits
  • Product / customer / geographical mix
  • Products (Value proposition)
  • Unit economics (Value proposition vs. price vs. costs)
  • Key capabilities (Distribution, supply, assets, knowledge, etc)

Analyze our company:

  • Market share, growth rates, profit
  • Product / customer / geographical mix
  • Products (Value proposition)
  • Unit economics (Value proposition vs. price vs. costs)
  • Key capabilities (Distribution, supply, assets, knowledge, etc)

How to increase revenues:

  • How to increase the scope: Product / customer scope, geographical scope
  • How to improve value proposition (How to fix your weaknesses and improve your strengths; Potential increase in price and volumes)
  • How to answer the competitors (Unique or hard to build property and contracts; Customers / suppliers / complements with lock-in; Reputation and relationships; Organizational capabilities; Product features and know-how)
  • Other benefits of scale (Spreading Fixed costs, Change in technology, Bragaining power)

However, if it is the questions on creativity in the middle of the case as the question on creativity I would use the following framework:

Organic growth

  • Vertical integration
  • Horizontal integration

Non-organic growth

  • Existing product (Value proposition, price, volume, Revenue models (one-time payment, subscription), Channels (Online, offline), etc)
  • New markets / New segments (Geographical markets. Types of customers: B2B, B2C, B2G, etc. E.g. Female magazine may sell magazines to customers and advertising services to business)
  • New products (Product mix - you may have multiple products and variation of products. Think of breadth (e.g. collection size in fashion) and depth (e.g. sizes and colors of dress) of your product line. Croselling opportunities - e.g. selling accessories)

Best!

Hi!

In general, there are no strict guidelines and the interviewer may have both in mind. It's much more important when the question is being asked:

  • In the beginning of the case as the main objective
  • In the middle of the case as a question on creativity

In the beginning of the case I would use the following broad structure:

Analyze the market:

  • Size and growth rates
  • Segments (geographical, customer, product)
  • Distributors / Suppliers
  • Regulation
  • Key market trends

Analyze the competitors:

  • Market shares, growth rates, profits
  • Product / customer / geographical mix
  • Products (Value proposition)
  • Unit economics (Value proposition vs. price vs. costs)
  • Key capabilities (Distribution, supply, assets, knowledge, etc)

Analyze our company:

  • Market share, growth rates, profit
  • Product / customer / geographical mix
  • Products (Value proposition)
  • Unit economics (Value proposition vs. price vs. costs)
  • Key capabilities (Distribution, supply, assets, knowledge, etc)

How to increase revenues:

  • How to increase the scope: Product / customer scope, geographical scope
  • How to improve value proposition (How to fix your weaknesses and improve your strengths; Potential increase in price and volumes)
  • How to answer the competitors (Unique or hard to build property and contracts; Customers / suppliers / complements with lock-in; Reputation and relationships; Organizational capabilities; Product features and know-how)
  • Other benefits of scale (Spreading Fixed costs, Change in technology, Bragaining power)

However, if it is the questions on creativity in the middle of the case as the question on creativity I would use the following framework:

Organic growth

  • Vertical integration
  • Horizontal integration

Non-organic growth

  • Existing product (Value proposition, price, volume, Revenue models (one-time payment, subscription), Channels (Online, offline), etc)
  • New markets / New segments (Geographical markets. Types of customers: B2B, B2C, B2G, etc. E.g. Female magazine may sell magazines to customers and advertising services to business)
  • New products (Product mix - you may have multiple products and variation of products. Think of breadth (e.g. collection size in fashion) and depth (e.g. sizes and colors of dress) of your product line. Croselling opportunities - e.g. selling accessories)

Best!

I think organic and non-organic headings got swapped :) — A on Jul 01, 2018

Hey!!

Based on my understanding, and I may be wrong here so please correct me, I beleive when talking about Revenue Growth, we talk in terms of growing either the market share or reducing the price. I can see where the confusion lies, since both market growth and price reduction can also be part of Inorganic Growth. However, I see Revenue Growth as a sub-set of the master set which is Growth per se. Since Organic and Inorganic Growth both have an impact on the Revenue stream. Hence, when faced with this dilemma, I prefer to clarify the Financial Metric with the Interviewer by directly asking him/her the exact financial metric that the case wants to assess.

Hope this helps!!

Hey!!

Based on my understanding, and I may be wrong here so please correct me, I beleive when talking about Revenue Growth, we talk in terms of growing either the market share or reducing the price. I can see where the confusion lies, since both market growth and price reduction can also be part of Inorganic Growth. However, I see Revenue Growth as a sub-set of the master set which is Growth per se. Since Organic and Inorganic Growth both have an impact on the Revenue stream. Hence, when faced with this dilemma, I prefer to clarify the Financial Metric with the Interviewer by directly asking him/her the exact financial metric that the case wants to assess.

Hope this helps!!

Hello

When asked for a growth strategy they are referring to growing revenues (this will grow market share). In this case I would suggest inorganic or organic ways to grow revenues...(remember revenues has two levers PRICE x VOLUME).

You may in some cases be asked to grow profits. Therefore your can increase revenues, cut costs or both.

Hello

When asked for a growth strategy they are referring to growing revenues (this will grow market share). In this case I would suggest inorganic or organic ways to grow revenues...(remember revenues has two levers PRICE x VOLUME).

You may in some cases be asked to grow profits. Therefore your can increase revenues, cut costs or both.

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