These statements are heard all over the world on any given day but most companies cannot switch direction just like that. A brand cannot afford to pull back from business as usual in order to refocus because doing so makes it vulnerable. It must instead continue to at least pursue stable growth in its current markets. Presence gives brand constancy and helps strengthen its reputation. It sustains present value.
Companies can compete in the right place at the right time and achieve strong growth and higher shareholder returns, company growth is driven largely by market growth, this is where timing comes into play because the GDP is now on the increase in most European Countries after many years of negative growth . Companies seeking growth is rarely about changing industries a risky prospect at best for most companies.
It is more about focusing time and resources on the faster growing segments where companies have the capabilities, assets, and market insights needed for profitable growth. To make sense of how to organize and coordinate these ideas, we need to rethink our very understanding of growth; Growth is not about expansion at least not directly.
Experts suggest sustained brand growth is premised on increasing value to customers, which in turn lifts revenue and demand so each of the strategies identified by McKinsey, needs to be analyzed in the light of how the customers benefit rather than what the brand gets. The least effective growth strategy overall. Is taking market share from competitors and it is no surprise that this is grabbing market share is, in reality it counts less for growth because it does not increase anything.
Yes, it removes weak players from the market but it can also set off price wars that can seriously undermine pricing and do nothing to cement loyalty. Brands focus on this because their current competitors are the brands they compete against each day.
Here are some interesting facts from the McKinsey findings:
Focus on building customers and alliances rather than beating competitors.
Salable brands are underpinned by salable ideas.
Growth is more specific than speculative.
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Article written by Paul Mc Cann Founder and President of CDG Brand.