Application of Business Expansion Strategy to Enhance Profitability

Many companies fail to achieve their growth targets in revenue and profitability for many reasons, one of which is the impact of economic down turn that hit the Nigerian economy over the last 3 years, CIGL not an exception. However, the probability of achieving profitable growth is heightened whenever an organization has a clear growth strategy and strong execution infrastructure. One without the other impairs the probability of success. This author describes why and prescribes strategies.Most businesses fall short of achieving their growth objectives for revenue and profitability. In fact, studies report success rates as low as 20%. Why is growth so elusive?Based on previous research and experience, there are 2 major reasons:- Inadequate consideration of opportunities within the core business, adjacent to the core business or within new customer sub-segments.- An organizational infrastructure that cannot support successful execution.Most companies have plans to grow their business and increase sales and profits vis-à-vis market share in the industry where it plays. Some common growth strategies in business include market penetration, market expansion, product expansion, etc.