The key strategic question at the Corporate level of the organization is, “How do we grow?” And there are four basic options available for growth:
Some organizations will choose to grow by focusing on just one or two options; others may elect to capitalize on all four options. But whatever the growth options selected, the Voice of the Customer will be critical in the successful deployment of that option.
Market Penetration requires gaining an understanding of the organization’s current competitive value proposition in its targeted markets. This understanding is acquired through the Customer Value Model and the Competitive Value Matrix.
Market Development may entail expanding into new geographic markets, for example. To do this effectively requires understanding the competitive landscape in those new markets.
Product Development may be a desirable option for growth if the organization is currently unable to provide the full range of product used by a targeted market. Organizations choosing this growth option are well-advised to assess the value propositions of new competitors in those product lines.
Diversification entails bringing new products to new markets, and is often achieved through a merger or acquisition. Of course, some organizations may choose to grow by integrating operations with suppliers or with distributors. These may be appropriate options for growth if current value propositions indicate quality problems in the supply chain or service problems in the distribution channel. Finally, any organization considering a merger or an acquisition would be well advised to understand the strategic health (value propositions) of the targeted company, in addition to understanding the financial health of that company.
MVS has worked with numerous organizations in the development of corporate growth strategies based on creating and providing superior value.
