Growth Strategies to Achieve Competitive Advantage Essay

Growth Strategies to Achieve Competitive Advantage - Essay Example Business growth is nothing but a double-edged sword. If it is well managed and properly controlled, it would definitely provide remarkable rewards to the shareholders as well as to the leaders of the emerging organization. But when growth is uncontrolled and poorly planned it might results in financial misery and failure (Sherman, A. J. July 13, 2006). Effective planning and management are crucial for sustaining the growth for a long time. Lack of effective planning and management would result to attack by the creditors, competitors, creative takeover specialists and hostile employees. The central question that needs to be asked regarding this topic is what strategies ought to be followed in facilitating growth. Apart from this central question, there could be various sub-questions which would be associated with the business structure, availability of the capital, time and market condition. The central question focus on the strategies that are required for growth. Without proper stra tegy, no management can keep the organization on the growth track. These strategies would be based on the structure of the organization, availability of the capital, time and market condition. As a result, these factors would be the main focus of the sub-questions. XYZ power utility company is operating in a developing state of Southern Africa. The company is a state-operated company; as a result, there is lack of efficiency in company’s operation. There could be various growth strategies for such a company. Ansoff matrix is one of the most useful growth strategies which are widely used in the industry. There are four strategies in Ansoff matrix. These are market penetration, product development, Market development, and diversification. In market penetration strategy organization tries to grow with its existing product within its existing market. In product development strategy firm introduces a new product in the existing market. In market development strategy firm identifies a new market for its existing product and finally in diversification strategy firm introduce a new product in a totally new market (Valuebasedmanagement.net, n.d.).