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A business remains viable as long as it keeps growing.\u00a0 However, forecasting how much the business will grow in a year, or in a certain period of time, is a difficult proposition for any business leader. \u00a0Likewise, it isn\u2019t easy for the leaders to envisage the following scenarios:<\/p>\n
Sustainable growth necessitates a Capabilities-driven Strategy (CDS), instead of the conventional market-driven approaches, focusing on anything that customers want.<\/p>\n
The Capabilities-driven Growth Strategy<\/a> entails capitalizing on the organization\u2019s current strengths, utilizing all possible ways\u2014e.g., existing or adjacent markets, organic channels (Marketing<\/a> or Innovation<\/a>), or inorganic methods (Mergers & Acquisitions)<\/a>.<\/p>\n The Capabilities-driven Strategy allows the leaders to achieve growth by combining all means in an Agile way, as long as they are in alignment with the firm\u2019s existing competences and Competitive Advantages<\/a>.\u00a0 A coherent Capabilities-driven Growth Strategy demands from the organizations to establish 3 main factors prior to its execution:<\/p>\n Organizations should have the ability to transform ideas into a strong position, having a practical Business Model that is able to create revenue and profits in the long term.<\/p>\n Organizations looking to compete into new business segments must have a clear vision to generate value and the resources needed to compete.\u00a0 Once an enterprise has attained a position of strength to compete, i.e. a Capabilities-driven Strategy and the means to take advantage of it, senior leaders should then outline a path to achieve profitable long-term development by blending together 4 approaches to Growth Strategy:<\/p>\n The relationship between these 4 approaches is crucial for success, yet it is often ignored. \u00a0It helps in developing a cycle of continuous improvement.<\/p>\n Let\u2019s dive deeper into the first 2 of these Capabilities-driven Growth Strategy approaches.<\/p>\n The first approach to growth entails mining maximum potential from the existing market.\u00a0 Leaders often neglect additional growth prospects in their existing markets. \u00a0They are enticed by potential in other businesses and foreign markets.\u00a0 Before looking into other businesses and diversifying into new markets, a lucid approach should be to carefully analyze the existing markets with a fresh perspective first and unearth new business and revenue sources.\u00a0 Gauging the magnitude of these untapped opportunities in the existing markets necessitates 3 key actions, i.e.:<\/p>\n For instance, fast-food restaurants can improve growth potential in their existing market by offering premium coffee, dessert, or drinks in addition to their regular breakfast or lunch offers.\u00a0 This is additional revenue which would otherwise be captured by coffee houses, juice bars, and the like by expanding their menus, offering meals, and making customers switch to them.<\/p>\n It is typical for organizations to look into nearby markets when thinking of expansion.\u00a0 These adjacent markets although seem attractive, but are developed by other enterprises using their capabilities systems that aren\u2019t straightforward to emulate.\u00a0 Therefore, the decision to expand your capabilities in the adjacent markets should be made very cautiously.<\/p>\n Enterprises aspiring to expand into adjacent markets or to other industries should first undertake an in-depth analysis of their capabilities and their suitability for nearby markets\u2014e.g. cost reduction, operational strengths, IT infrastructure and systems, supply chain<\/a>, or customers data.\u00a0 They should qualify those markets where they can serve their unique capabilities, identify new customers for existing offerings, or build new offerings using their capabilities.<\/p>\n Interested in learning more about the other approaches to Growth Strategy?\u00a0 You can download an editable PowerPoint presentation on Capabilities-driven Growth Strategy here\u00a0<\/a>on the\u00a0Flevy documents marketplace<\/a>.<\/p>\n You can download in-depth presentations on this and hundreds of similar business frameworks from the\u00a0FlevyPro Library<\/a>.\u00a0FlevyPro<\/a>\u00a0is trusted and utilized by 1000s of management consultants and corporate executives.<\/p>\n For even more best practices available on Flevy, have a look at our top 100 lists:<\/p>\n A business remains viable as long as it keeps growing.\u00a0 However, forecasting how much the business will grow in a year, or in a certain period of time, is a difficult proposition for any business leader. \u00a0Likewise, it isn\u2019t easy for the leaders to envisage the following scenarios: How much growth is necessary for their… Capabilities-driven Growth Strategy<\/span><\/a><\/p>\n","protected":false},"author":110,"featured_media":12321,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[81],"tags":[4,1522,3060,122,31,40,2,1849,700,388],"class_list":["post-12291","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy","tag-business-model","tag-capabilities-system","tag-capability-development","tag-competitive-advantage","tag-continuous-improvement","tag-growth-strategy","tag-innovation","tag-ma","tag-marketing","tag-strategy-2"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/12291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=12291"}],"version-history":[{"count":5,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/12291\/revisions"}],"predecessor-version":[{"id":12334,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/12291\/revisions\/12334"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/12321"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=12291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=12291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=12291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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![\"\"](\"http:\/\/flevy.com\/blog\/wp-content\/uploads\/2022\/12\/CDS.png\")
<\/a><\/p>\nIn-market Opportunities <\/strong><\/h2>\n
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Near-market Opportunities <\/strong><\/h2>\n
Do You Find Value in This Framework?<\/strong><\/h2>\n
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