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What is Intensive Growth?
Intensive growth is when a firm grows by expanding its product line or its market reach. Thus, if a firm introduces a new product, enters a new market, or further develops its own competency, than the firm is undergoing intensive growth. Intensive growth strategies are likely to help the firm grow in the market faster and make the company stronger.
Intensive growth can be best explained with a reference to the product market expansion grid. The product market expansion grid takes the product and the market into consideration and then suggests 4 strategies for intensive growth which a firm can implement.
4 Strategies for intensive growth
1. Market penetration
Market penetration is the most commonly used strategy for intensive growth. This strategy is used when the current products are expanding in current markets. Basically existing customers in existing markets are targeted. Thus a firm might reduce the price of the product to penetrate the market better. This ensures that the firm expands its market share and shows intensive growth.
2. Market development
Market development strategy happens when an existing product is introduced in a new market environment. In such a case, the company will have to use various promotional tactics as well as implement a marketing strategy to cover the new market.
3. Product development
Another form of intensive growth strategy is the product development strategy. When the current market is showing interest in a new product, than by product development, the company can increase its customer base and thereby show intensive growth.
4. Diversification strategy
The last strategy of intensive growth is the diversification strategy. Most commonly observed in geographical expansion, this form of intensive growth strategy takes place when a new product is introduced in a new market. Thus the challenges involved in diversification strategy is huge, but if the strategy is a success, than the profit and return on investment is huge as well.
Thus, overall there are many ways to show intensive growth for a company. The company has to implement one or more strategy at any given point of time to show continuous intensive growth.
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