Since my last publication, the Bank of the Republic redefined the growth range of the economy for 2017, placing it between 1.7% and 2.5%, and the trend may not change in the medium term. This confirms the relevance of thinking about new growth strategies.
In the past I mentioned the first four: Increase market share (grow from dormant competitors), Strengthen customer and other stakeholder loyalty, Strengthen Brands and Innovate. (see previous column).
The following growth strategies proposed by Philip Kotler are:
1) International expansion: Enter new markets with products from the company's current portfolio. The exchange rate turns out to be an important competitive advantage to reach consumer segments in other countries that are willing to try new brands that offer a very good cost-benefit ratio. It is also the beginning of a long-term risk diversification strategy.
2) Alliances, Acquirers or Functions: rethinking the business model also implies redefining new allies that could previously be suppliers or competitors. Increasing the dimension of some of the company's processes can deliver efficiencies that were not previously available to the consumer. Likewise, by means of alliances (COBRANDING) it is possible to reach segments that were not served before.
3) Grow through CSR (Corporate Social Responsibility): Although many companies focus on short-term results, consumers are currently rethinking their purchasing criteria: they are beginning to think about elements that give meaning to their purchasing actions and in some cases to their lives, they may now be asking themselves why it is worth paying more for one brand or another, they are questioning the impact they have on society.
Then the company that manages to connect will be able to win the preference. Among the operational strategies that can be developed to grow based on CSR are: Promotion of a cause; Corporate social marketing; Volunteering; Patronage and others.
See example Example of TOMS shoes brand,
4) Collaborate and work hand in hand with public entity projects: The government must continue with its programs, so those who have not contemplated the state as a potential client are missing a great opportunity. Those who make alliances with the state can access new markets and can reach higher scales of operation.
Not all strategies apply to all companies, making an in-depth analysis of the current capabilities of the organization and those that can be developed may guide which strategies are appropriate. But just because you have not done them before does not mean that you are not capable of implementing them.
RAFAEL LOPEZ LLAMAS.
GENERAL MANAGER
BRANDSTRAT