The Challenges OF Growth - Essay Example

due Challenges to Growth Though different businesses operate in different environments, all businesses face similar challenges to growth regardless of their size. An effective growth strategy can easily be formulated by understanding business customers need and creating value to them, ensuring that the firm operates differently to competitors, and leveraging business capabilities in the view of achieving customer value (4). Intuitively, the process is simple but firms find it hard encompassing the three principles in a single strategy.

Specialisation in either of them and ignoring a single principle results into reduced competitive advantage (7). Factually, success in growth results from simultaneously encircling the market entities (competitors and customers) and the company in formulating strategies, a process that leads to the 3-circle analysis. Remarkably, the three principles are interrelated and prudent planner can easily analyse the business environment features to create a long-term strong growth strategy. Thinking in manner that favours the three entities constitutes competitive advantage (8).

Research on customer values and thinking to effectively creates customer trust and long-term relationship with the firm. Self evaluation is necessary as it ensures that the value produced to the clients coincides the value they require (9). Secondly firms must evaluate externalities. Negative externalities are not totally harmful as some (non-value and negative value), create some level of future demand that the firm can use a growth opportunity. This increases the use of its capability. Exploring unmet needs opens channels for growth.

Notably, in addition to existing market gap, negative values might also create extra need not satisfied by current products (10). As matter of fact, meeting the unmet needs requires an approach not yet explored by existing competitors hence can be used to gain competitive advantage. Work citedUrbany, Joel, and James H. Davis. Grow by Focusing on What Matters: Competitive Strategy in 3 Circles. New York: Business Expert Press, 2010. Print.