• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Additives Update

    Pigment Supplier Directory

    Interior Architectural Coatings

    Biocides Update

    Powder Coatings Market
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Video Bites
    Raw Materials & Equipment
    Suppliers News
    Live From Shows
    Top News
    IGL Coatings Launches Graphene Reinforced Dual System Ceramic Coating

    Miller Paint Declares Simple Serenity its 2021 Color of the Year

    TAUBMANS Paint by PPG Releases ‘Chromatic Joy’ Palettes

    Huntsman Finalizes Acquisition of Gabriel Performance Products

    PPG Completes COLORFUL COMMUNITIES Project at School in A. Bangsaothong Samutprakarn, Thailand
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    IGL Coatings Launches Graphene Reinforced Dual System Ceramic Coating

    TAUBMANS Paint by PPG Releases ‘Chromatic Joy’ Palettes

    Miller Paint Declares Simple Serenity its 2021 Color of the Year

    Datacolor Introduces High-Efficiency Benchtop Spectrophotometer Series, Spectro 1000/700

    Zeppelin Acquires MTI Mischtechnik
    Additives
    Binders
    Pigments
    Solvents

    Huntsman Finalizes Acquisition of Gabriel Performance Products

    LANXESS Acquires Biocides Specialist INTACE

    dar-tech, inc. Becomes U.S. Midwestern Distributor for ZS Interpolymer

    OQ Chemicals Announces Carboxylic Acids Price Increase

    AOC Announces Price Increase
    Buyers Guide
    Company Capabilities
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    ROSS Mixers

    Eagle Specialty Products

    Siltech Corporation

    Keim Additec Surface USA LLC

    Shepherd Color Company, The
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    The Waterborne Symposium (2021)

    Surface Finishing Mexico 2021

    PCI Powder Coating Week

    Southern Society for Coatings Technology Annual Meeting and Technical Conference

    Coatings for Africa
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Keim Additec Surface USA LLC

    Active Minerals

    Siltech Corporation

    Shepherd Color Company, The

    ROSS Mixers
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Business Corner

    Strategies for Growth: Considering the Options

    ...

    Strategies for Growth: Considering the Options
    Related CONTENT
    • Pilot Chemical Announces New Business Line Manager
    • Micro Powders Appoints Rich Czarnecki as Director, Business & Technology Development
    • USGBC, BRE Partner to Advance Green Buildings, Communities, Cities
    • Valentus Specialty Chemicals, Inc. Partners with US Coatings, The Thortex Group
    • Evonik Appoints EMCO-INORTECH ULC as Distribution Partner for Polyurethane CASE Market in Canada
    Phil Phillips and Gary Shawhan, Contributing Editors01.07.19
    Charting a successful growth path for your business begins with identifying and understanding the company’s core competencies and overall strengths. Sorting through and prioritizing the best paths forward requires management to first establish a set of business goals and objectives and a time frame within which they want to accomplish them.

    Figure 1 highlights four alternative strategies that represent distinct pathways that can be contemplated by management to achieve established business goals and objectives. In this article, we examine the general characteristics and considerations for choosing one or more of these paths as a growth strategy.

    Concentric Markets

    Concentric markets are those that can be identified as representing a significant share of the company’s present business revenue and profit. Targeting concentric markets for growth is the safest path as current resources, products and services are already in place. In addition, market knowledge, awareness of trends and unmet needs and an understanding of the present competitive environment exist.

    Among the strategic options normally considered in addressing growth in concentric markets includes targeting new customers or capturing share gain within current market spaces. Targeting unmet needs or product/process improvements that can deliver a net value to specific accounts are options frequently considered. These unmet needs can be addressed through internally directed R&D.

    Alternatively, Licensing-in new technology that can bring improvements in product performance and potential competitive advantages can expand options and/or shorten the time-frame within which these improvements can be made market ready.

    By themselves, concentric growth strategies are normally limited in the size of the revenue growth (and profits) that can be generated. When the strategic growth goals and objectives for the business are high, concentric market strategic normally become a compliment to other more broad-based initiatives.

    Adjacent Markets

    Adjacent markets are those where there are identifiable, common threads to the company’s current business. This may include such things as similar product/performance requirements, resourcing needs and technical support expectations by customers coupled with time-to-market realities.

    Of particular importance, when focusing company growth on an adjacent market strategy, is a commonality in the channels-to-market between current and targeted market segments. This element takes advantage of the company’s core competencies, reputation and brand identity. The strategic intent is to expand the size of the company’s overall business opportunity while maximizing the use of current resources and shortening the time-to-market as much as possible.

    Pursuing an adjacent market growth strategy can be addressed through additions of products/technology or by selectively targeting individual accounts in specific market spaces who have a similar need for products or services currently offered. In either case, identifying unmet needs is a key element in strategy development.  Relying on internal R&D to deliver differentiated products is one option. Licensing-in technology, directed at providing products that address identified unmet needs, is an alternative which allows companies to reach beyond their internal product development capabilities.

    Targeting geographic growth is an alternative adjacent market growth strategy. In this case, it is important that the geography being targets be supportable now with similar products and support services to be considered within this strategic scope. When reasonable parody (including customer needs) does not exist between the current geographies served and the target geographies then this strategy should be addressed as a diversification initiative.

    Adjacent market growth strategies are a very good option for companies that have established a strong position and reputation within their present markets. Electing to focus company growth plans on adjacent markets are often easier to implement. This is especially true for smaller or medium-sized businesses depending on the scope and type of markets they currently serve. A key determinant, in this case, is the size of overall company business goals and growth expectations along with the time-frame within which these goals are to be met.

    Market Diversification

    A market diversification strategy becomes an important consideration for companies that have a narrowly focused business or those that have businesses that have matured to a point that they do not provide a viable path for profitable growth. Taking this approach may also be the consequence of having a sufficiently high market share where there is little additional room for share gain.

    Businesses that serve highly specialized market segments also may fit into this category. In general, each of these scenarios suggests that there is a need for the company to diversify in some manner to achieve measurable growth going forward. Staying the current course, will not do the job.

    Developing successful market diversification strategies does not eliminate the importance of having some identifiable links to the existing business and core competencies. These links could be found in the similarity of formulations used in these new market spaces, the types of substrates that need to be coated, similar performance requirements within these additional markets, etc. In any case, finding one or more threads that connect the core competencies of the company between existing markets served and new market targets is a critical consideration in considering diversification.

    Channels-to-market is also a very important element in strategy development. Sorting out the market segment options for growth needs to put a high value on those markets that currently have some ties to the current channels-to-market. Developing new channels-to-market, in unfamiliar territory, is not an easy thing to do especially within a reasonable time-frame.

    Partnerships, joint ventures or acquisition come into play as options when diversifying into new markets where some of the elements needed to facilitate a workable plan can be achieved through the combination of two entities. Grass roots product development, targeting diverse markets outside of the existing core business, is normally not a workable option unless accompanies by relevant links to the company’s existing business.

    Business Diversification

    A business diversification strategy represents a major departure from the present business and not reliant on core competencies as a determinant of a decision to go forward. Key elements, in this case, are the size of the opportunity and the markets ability to provide opportunity for sustained profitable growth. In most cases, when pursing this course, some tie does need to exist with the present business that when presented to the marketplace makes sense to potential customers in the new market space as to the company’s value and commitment as a new participant.

    Acquisition is most often the preferred path forward in this case. Many of the needed products/technologies and accompanying core competencies are immediately accessed. While the initial investment is large, the ability to achieve impact against growth goals for the business within a relatively short time-frame is unquestionable faster. 
    Related Searches
    • environment
    • case
    Suggested For You
    Pilot Chemical Announces New Business Line Manager Pilot Chemical Announces New Business Line Manager
    Micro Powders Appoints Rich Czarnecki as Director, Business & Technology Development Micro Powders Appoints Rich Czarnecki as Director, Business & Technology Development
    USGBC, BRE Partner to Advance Green Buildings, Communities, Cities USGBC, BRE Partner to Advance Green Buildings, Communities, Cities
    Valentus Specialty Chemicals, Inc. Partners with US Coatings, The Thortex Group Valentus Specialty Chemicals, Inc. Partners with US Coatings, The Thortex Group
    Evonik Appoints EMCO-INORTECH ULC as Distribution Partner for Polyurethane CASE Market in Canada Evonik Appoints EMCO-INORTECH ULC as Distribution Partner for Polyurethane CASE Market in Canada
    J.W. Ostendorf Officially Part of the Hempel Group J.W. Ostendorf Officially Part of the Hempel Group
    PPG Holds Inaugural Innovation Summit in Switzerland PPG Holds Inaugural Innovation Summit in Switzerland
    Evonik Sells Galena, Kansas Site Evonik Sells Galena, Kansas Site
    Siltech Corporation Siltech Corporation
    Terrence Hahn Joins Axalta As CEO Terrence Hahn Joins Axalta As CEO
    Oxea: Successful Start-up of New Propanol Production Unit in Bay City, Texas Oxea: Successful Start-up of New Propanol Production Unit in Bay City, Texas
    Intech Services Holds 2018 Training Workshop for Teflon Coatings in Philadelphia, PA Intech Services Holds 2018 Training Workshop for Teflon Coatings in Philadelphia, PA
    ICP Industrial Inc. Forms ICP Industrial Canada, Inc., Partners with Divicor Inc. ICP Industrial Inc. Forms ICP Industrial Canada, Inc., Partners with Divicor Inc.

    Related Business Corner

    • Value Sectors and their Relationship  to Business Positioning

      Value Sectors and their Relationship to Business Positioning

      ...
      Gary Shawhan, Chemark Consulting 01.11.21

    • Assessing the Impact and Potential Consequences of COVID 19 Across the Asia Pacific Region

      Assessing the Impact and Potential Consequences of COVID 19 Across the Asia Pacific Region

      ...
      Dan Watson & Gary Shawhan , Contributing Editors 10.08.20

    • Leadership Styles

      Leadership Styles

      ...
      Phil Phillips, PhD and Gary Shawhan, Chemark Consulting 09.07.20


    • Persuasive Selling

      Persuasive Selling

      ...
      Phil Phillips, PhD & Gary Shawhan, Chemark Consulting 08.10.20

    • Impact of COVID-19 on  Coatings Industry, Business Climate  in China and Asia Pacific Region Update

      Impact of COVID-19 on Coatings Industry, Business Climate in China and Asia Pacific Region Update

      Coatings World Interviews Dan Watson of Blairgowrie Associates Part 2
      Gary Shawhan, Chemark Consulting 07.06.20

    • An Update on the  Impact of Covid 19  on Business Climate in China and the  Asia Pacific Region

      An Update on the Impact of Covid 19 on Business Climate in China and the Asia Pacific Region

      Part 1 – CHEMARK Interviews Dan Watson of Blairgowrie Associates
      Gary Shawhan, Chemark 06.15.20


    • Challenging Your New Products Ideas:  Decision Making Considerations (Part I)

      Challenging Your New Products Ideas: Decision Making Considerations (Part I)

      New products and innovative technologies represent the promise of opportunity for revenue growth for a company.
      Gary Shawhan, Chemark Consulting 04.15.20

    • Sales Force Compensation in Today’s Market

      Sales Force Compensation in Today’s Market

      ...
      Gary Shawhan, The CHEMARK Consulting Group 03.13.20

    • Market Research - An Important Management Tool

      ...
      Gary Shawhan, The CHEMARK Consulting Group 02.19.20


    • M&A - Engaging Outside Services During  the M&A Process (Part 2 of 2)

      M&A - Engaging Outside Services During the M&A Process (Part 2 of 2)

      ...
      Gary Shawhan , The CHEMARK Group 01.20.20

    • EU Poison Center Notification –  Time to Make Sure You’re Prepared

      EU Poison Center Notification – Time to Make Sure You’re Prepared

      ...
      Ray Rex, CRC-US & Gary Shawhan, Contributing Editors 12.11.19

    • Is The China-U.S. Trade War Over or Just Beginning?

      Is The China-U.S. Trade War Over or Just Beginning?

      ...
      Dan Watson , Contributing Editor 11.11.19


    • Vitracoat- an Interview with Steve Houston

      Vitracoat- an Interview with Steve Houston

      Vitracoat has expanded operations across multiple continents and is ranked amongst the top powder coating manufacturers in the world.
      Gary Shawhan, Contributing Editor 09.30.19

    • M&A – Understanding the Dynamics for Buyers and Sellers (Part 1 of 2)

      M&A – Understanding the Dynamics for Buyers and Sellers (Part 1 of 2)

      ...
      Gary Shawhan and Phil Phillips, The CHEMARK Consulting Group Contributing Editors 08.09.19

    • The Economics of Carbon Capture Coatings

      The Economics of Carbon Capture Coatings

      ...
      Phil Phillips, Contributing Editor 07.03.19

    Trending
    • AkzoNobel Proposes To Acquire Tikkurila For €31.25 Per Share
    • LANXESS Acquires Biocides Specialist INTACE
    • AkzoNobel Announces Share Buyback
    • Raw Material Price Increases Pile Pressure On Paint Manufacturers
    • PPG Acquiring Global Coatings Manufacturer Wörwag
    Breaking News
    • IGL Coatings Launches Graphene Reinforced Dual System Ceramic Coating
    • TAUBMANS Paint by PPG Releases ‘Chromatic Joy’ Palettes
    • Miller Paint Declares Simple Serenity its 2021 Color of the Year
    • Huntsman Finalizes Acquisition of Gabriel Performance Products
    • PPG Completes COLORFUL COMMUNITIES Project at School in A. Bangsaothong Samutprakarn, Thailand
    View Breaking News >
    CURRENT ISSUE

    January 2021

    • Additives Update
    • Pigment Supplier Directory
    • Interior Architectural Coatings
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Ingredient Manufacturers Discuss the E-Sports Market
    Euromonitor Names Top Ten Trends for 2021
    Study Highlights Differences Between EPA's and DHA's Effect on Sleep
    Coatings World

    Latest Breaking News From Coatings World

    IGL Coatings Launches Graphene Reinforced Dual System Ceramic Coating
    Miller Paint Declares Simple Serenity its 2021 Color of the Year
    TAUBMANS Paint by PPG Releases ‘Chromatic Joy’ Palettes
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Eitan Medical Receives FDA Clearance for Sapphire Infusion System
    Researchers Successfully ‘Fine Tune’ New Thermoplastic Biomaterial
    RSIP Vision Announces Versatile Medical Image Segmentation Tool
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Global Biosciences Co. Selects ValGenesis VLMS
    Eisai Appoints Chief Clinical Officer of Oncology Biz
    Nexelis Acquires GSK Vax Lab in Marburg
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Top Beauty Brands in the World—And Most Loved Fragrances
    P&G Reports Q2 Results
    A Lacquering Technique Makes Very Good Girl by Carolina Herrera Shine
    Happi

    Latest Breaking News From Happi

    Flow Launches Collagen Waters
    Associations Congratulate Biden & Harris
    David Stanko Joins JPMS
    Ink World

    Latest Breaking News From Ink World

    Morancé Soudure France Adds Comexi F2 MC 10-color Flexo Press
    THIMM Group Installs 1st Koenig & Bauer CorruFLEX
    Cowan Graphics Adds Fujifilm Inca OnsetX3 HS
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Domino grows installation and service teams
    ABG keeps pace with demand with recruitment drive
    Acucote expands FSC-certified portfolio
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    First Quality Launches Incognito by Prevail
    Essity Launches Reusable Underwear Product
    Honeywell Delivered 225 Million Masks in December
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    DJO Acquires Trilliant Surgical
    FDA Breakthrough Device Designation Granted to Spiderwort's Spinal Cord Technology
    Bioventus Appoints SVP of Operations
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    UDC Subsidiary Adesis' Website Wins 2020 MarCom Platinum Award
    Roadsimple Modernizes Warehouse Ops with Zebra Technologies
    Graphene Flagship Launches Redesigned Website

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login