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Growth Strategies in Structure

Anonymous A asked on Oct 08, 2018

When I get a growth strategy case, I usually have growth strategy as a branch in my issue tree. I noticed that in Case in Point, Cosetino already draw out some possible strategies in his notes to such cases. My questions is then: I usually draw out the first part of my structure tree (could be two branches: Company and Market, both with sub-branches) and then leave the growth strategy without any sub-branches. Then I communicate the first part of my structure and say that I will discuss possible growth strategies bearing the first analysis in mind (in this case Company and Market). Is this a good approach? Or should I already have more structure on the growth strategy branch? (E.g. if it is grow profitability, should I phrase it something like: After analyzing the company and market I will look into possible ways of growing our profitability by increasing revenues and decreasing costs) Or should I have some suggestions ready already when communicating my structure?

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Vlad replied on Oct 08, 2018
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Hi,

It depends on when the revenue growth 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!

. — Nguyên on Oct 08, 2018 (edited)

Benjamin updated his answer on Oct 08, 2018
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Hi,
the topic is a bit wide, can you please give two very different examples of growth cases you have treaded and I will provide detail plan for each.

Best

(edited)

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