Growth

October 7, 2022

Growth

In the global economy of the twenty first century, sustained profitable growth will increase in importance as a linchpin to create value for shareholders. Recording sustained profitable growth has been elusive for all enterprises except the forward thinking organizations. The dilemma that confronts the vast majority of organizations is whether to exclusively focus scare resources on a singular growth strategy or ration limited resources to pursue several growth pathways to reach new peaks of sustained growth, performance and profitability. The hypercompetitive world economy of the 21st century presents not only daunting challenges to generating profitable growth and maximizing shareholder value on a consistent basis but also offers opportunities for enterprises seeking growth through multiple routes to achieve, sustain, and retain market leadership. These tasks are aggravated by rapidly changing market forces, industry structure, technological advancements, shorter product life cycles, fast changing consumer tastes/preferences, market saturation and formidable competitive pressures from emerging market multinationals. The later have exploited the low cost/wage home advantages and internationalization experiences gained from operating in domestic markets plagued by institutional voids. Consequently, forward thinking multinational organizations from developed economies have been motivated to explore the optimal combinations of build, borrow and buy growth strategies to achieve, sustain and regain market leadership. The build, borrow and buy option, however, is not risk free but subject to inherent challenges. Nonetheless, it must be pursued or an enterprise risk being sidelined by competitors that are successful in broadening their growth strategies to create value for shareholders. Xrries helps companies explore and implement a broad range of growth strategies which facilitate their strategic growth and globalization objectives. We collaborate with our clients by first searching for growth opportunities by investigating three critical corporate growth strategies, 1) concentration strategies, 2) integration strategies, and 3) diversification strategies. The analysis primarily involves changing one or more of five key elements

1. Product
2. Market
3. Industry
4. Industry level
5. Technology

Together with clients, we then drill further down the five key elements by examining the state of each current element and what the new and/or substitute for the element might be. These analysis leads to the identification of a select number of corporate growth strategies that addresses the client’s plausible broad mix of growth strategies. We then assist clients with successful implementation to achieve, sustain, retain market share and increase revenue, profitability and enhance shareholder value.