Adapted from Marc Cosentino’s Case In Point, 8th edition (p. 45):
It is important to remember that growing a company or increasing sales does not necessarily imply an increase in profits. Growth can mean capturing more market share, improving brand recognition, expanding the customer base, or a number of other objectives. Most commonly, the focus is on increasing sales volume.
Understand the Company
- What does the company do?
- What is its product mix?
- What is the composition of its revenue streams? Its costs?
- How big is the company? How is its market share?
Analyze the Industry
- Where is the industry in its life cycle? Is it growing?
- How is the company faring compared to its competitors?
- Are the client’s prices in line with its competitors?
- Is it an easy market to enter? (see Market Entry Cases)
- How sensitive is the industry to new or changing technology?
Increase Volume
- Expand distribution channels
- Diversify the product line (especially in areas that won’t cannibalize existing sales)
- Create seasonal balance
- Identify segments of the business that have the highest growth potential
- Invest in a marketing campaign
- Acquire a competitor; this is the fastest way to increase market share (see An M&A Checklist)
- Adjust prices (see Pricing Strategies)
K Does Cases 