“The most powerful growth engines are made up of a handful of capabilities providing real differentiation in the market.”
The problem: Chasing growth
Too many companies are chasing growth wherever it presents itself and end up pursuing too many types of growth strategies in parallel. As a result, they spread their resources thin and leave potentially viable growth opportunities under-resourced. They may experience a temporary revenue boost, but the gains are almost never sustainable.
Those companies end up being okay at many things, but great at nothing. They don’t build the strategic advantage that leads to long-term growth.
Our solution: Don’t chase growth — focus on building your company’s growth engine
At Strategy&, we believe that consistent growth is the result of building a powerful growth engine — a system of a few capabilities that provides real differentiation in the market. From there, growth becomes the result of leveraging that strategic advantage again and again, by pursuing paths that are in line with what the company does — or could do — uniquely well.
Companies that want to grow in a coherent, sustainable way should pursue one of three types of growth strategy, presented here as a bull’s eye. The approach that tends to generate the most value is the one at the center. Options get more expensive and riskier as you move toward the periphery.
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