Profitable growth can be achieved by various means. What is crucial is to select the right strategy. A strategy that takes due account of the financial room for maneuver, the available resources, and the company’s organizational and cultural capacity for change.
For clients who for market-related reasons find themselves in a critical situation, who are emerging from a process of restructuring or who simply wish to implement a sustained improvement in their profitability, BGP offers four strategic approaches which – depending on the point of departure and the amount of leeway there is for action – can lead to profitable growth:
Focusing on core business
The objective in focusing on core business is to reduce complexity and unnecessary diversity in the company's product and market portfolio. The principles here are simplicity and a clear focus on the core of the enterprise. By concentrating on essentials in this way it is possible not only to reduce costs but above all to exploit new opportunities for growth.
High Performance Sales (HPS)
High Performance Sales: The reserves of productivity in the field of sales are generally underestimated. Through a combination of strategic and organizational restructuring of a company's sales activities, it is possible in individual cases to achieve substantial increases in both sales and earnings. A six-step program is available to implement a High Performance Sales concept of this nature.
Expansion into neighboring market segments
Given a stable and focused core business, it is possible to expand into neighboring market segments profitably and without major financial commitment. The preconditions for such an expansion include superior products which can be easily adapted in order to develop these new markets, as well as a certain brand image.
Service innovations
In return for a relatively low financial investment, service innovations can exert huge leverage on a company's profitability. Given a strategic framework and an approach which specifically exploits the knowledge and reserves of creativity of the company's employees as well as its customers, service innovations can be systematically developed which will bring marked improvements in profitability in as little as six to twelve months.
Each of these four strategic approaches is implemented using field-tested procedures that can be tailored accordingly to suit individual companies. In order to evaluate the potential of increase profitability and the financial feasibility of a growth strategy, BGP replicates the individual strategic steps in a specially developed IT based business case planning system.
