Why is it that some companies set a clear path for growth whilst others simply go day to day, putting out one fire after another? Why do some companies grow regardless of whether their industry grows, whilst others simply rise and fall with either the growth or decline of their market? After all, any company can grow in good times. Only the best continue to grow no matter what. Companies that experience consistent growth understand the importance of strategic planning initiatives that link business growth strategies and objectives to company wide resources. In addition, they are less concerned about being market leaders or market followers and instead concentrate on being market experts. They are also open to any strategic partnership that can increase service capabilities and reduce costs. Keeping these attributes in mind, how does each play a significant role in business growth?

Importance of strategic planning initiatives:

Strategic planning initiatives involve more than just coming up with objectives and goals. Strategic planning success relies upon providing the framework needed to enact strategies that link a company’s resources to the successful completion of these objectives. For instance, let’s assume that a company wants to speed up its product development to one additional new product a quarter. This will allow the business to increase its gross profit objectives and its market share. What company wide resources does the company have that could help make this happen? Are there engineering and design resources that could be applied? Does the company have strong customer relationships that could be leveraged to get these products tested and approved faster? There are a number of resources a company can use to ensure its strategies for growth are successful.

Importance of market knowledge:

Let’s assume a company wanted to increase its quarterly sales figures by 5% and this represents a £5500 increase in gross profit. Would a company need to be a market leader or market follower to accomplish this goal? Contrary to popular opinion, today’s successful businesses are neither. Whilst there are plenty of examples of market leaders winning the day, there are an equal number of market followers that came out on top. Successful businesses today rely upon being market experts first. They use their market knowledge to then decide whether to lead or follow the market. Marketing is the single most important aspect of increasing sales. It points the way to identifying the costs of finding new customers, the price customers will buy at and the competition’s strengths and weaknesses. Succeeding in growing sales is as much about understanding a company’s competitors, as it is about understanding a market’s customers.

Importance of strategic partnerships:

Strategic partnerships allow businesses to share marketing, development and advertising costs, whilst increasing market share and visibility. The importance of strategic partnerships is that it allows both companies to grow from shared resources. It ensures each benefit from the other’s core competencies. Improving a company’s service capabilities, whilst lowering costs, is the ultimate goal. Strategic partnerships allow companies to gain market share and reduce costs.

Business success and growth go hand in hand. Companies that adopt strategic planning objectives, whilst combining company wide resources to accomplish these objectives, are often able to come out on top. In addition, setting plans to increase market share is another essential aspect of business success. Finally, strategic partnerships allow companies to benefit from collaborative efforts and provide the impetus to reduce business costs.

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