What are the Types of Growth Strategies? (Complete Guide)

types of growth strategy

Growth is a fundamental objective for businesses across various industries. To achieve sustainable expansion and remain competitive, organizations employ different growth strategies. These strategies outline a company’s approach to increasing its market presence, customer base, and overall revenue. Understanding the various types of growth strategies is essential for business leaders and entrepreneurs looking to propel their organizations forward.

Each strategy offers unique opportunities and challenges, and selecting the right approach depends on factors such as industry dynamics, organizational goals, and market conditions. By delving into these strategies, you will gain insights into how businesses can leverage different avenues to drive growth and achieve long-term success.

Let’s explore these growth strategy types in detail.

See Also: Top 5 Advantages And Disadvantages Of Social Media Marketing

Types of Growth Strategies: Intensive Growth Strategy

 A company’s primary goal while expanding its target market segments is to advance and experience growth with the current items.

Simply put, imagine, for instance, that a small business enjoys continuous sales growth and wishes to develop its brand name. For that, they should use intensive growth strategies.

intensive growth strategy

This entails understanding and requires intensive growth tactics, but putting these strategies into practice requires work to strengthen. Acquiring a competitive position in the firm takes a lot of work. For that, the company establishes itself by improving the effectiveness of its existing products and adding extra value to increase sales and become the market leader.

Further in the article, we will know about types of growth strategies.

Types of Intensive Growth Strategies

Intensive growth strategies are further divided into three types. Market penetration strategies, product development, and market development.

Market Penetration

It measures how much a product or service is produced and how much it reaches potential customers compared to its estimated market value.

market penitration

For example, in the early days, cell phones were used for making calls, and as the days passed, companies introduced several ways to increase their efficiency and penetrate the market. As a result, several companies developed mobile phones. Mobile phone companies use this method to ensure their potential customers purchase their products, not their competitors.

See Also: Sports Marketing Definition: Its Impact on Sports Brands

Market Development

Simply, they discover new potential consumer markets for their new product lines. Market development involves two main processes: market segmentation and promotion. So, first and foremost, you must segment your potential consumers or identify a target group from the group market to promote your products. To successfully implement these two processes, they need to apply these strategies.

market development

Distribution channel strategy involves the creation of new channels and their development for customer reach. The product dimensions evolve accordingly when introducing a new product packaging strategy based on consumer interests and needs.

For example, in the evolution of guitars, they identified the customer’s needs and introduced their products to increase sales. It began with an acoustic guitar and progressed to an electric guitar. The electric guitar is now easier to learn and play than its former counterpart.

Although it can produce desired results for the company, it involves a lot of risk and uncertainty.

Product Development

Instead of introducing a new product, they increase or improve existing ones. Modify the quality of the existing one by changing their ideas to increase sales and attract more attention from consumers than the amount they already have.

product development

Mobile app development is an excellent example of this product development, as developers frequently fix bugs for improved performance. 

See Also: What Are Marketing Goals? Things To Consider For Your Strategy

Types Of Growth Strategies

Here are a few types of growth strategies.

Integration Strategies 

The business develops its product and efficiency to enhance its competitors’ by expanding and reducing the risk of losing it. Integration strategies have different types of horizontal integration and vertical integration, and vertical integration is further divided into three categories: forward integration, back integration, and balanced integration.

growth strategy

A coffee shop, for example, may purchase or acquire a cup factory to reduce costs, increase independence, and increase sales than before.

Horizontal Integration

A horizontal integration strategy is when a company expands by acquiring a similar business.

For example, Facebook expands its brand by taking over a similar business like WhatsApp.

Vertical Integration

Vertical Integration Strategy is similar to horizontal integration, and it also expands by acquiring or developing its supply chain or production rather than sharing it with its suppliers.

 For example, Well-known companies such as Amazon, Apple, and Tesla use vertical integration as part of their strategies. A streaming platform like Netflix, which shifted from getting licensing for shows to producing its TV shows and movies, is the best example of this strategy.

Defensive Strategies

Their main objective is to satisfy the consumer, and this kind of strategy serves as a tool to defend them from their equal rivals while they wait for the appropriate moment to expand their firm in the market. It has joint ventures, retrenchments, divestitures, and liquidations.

defensive strategy

For a simple example of this strategy, consider pricing and offers. Brands often offer and deal with their products at lower prices than their competitors. So it is easier for its consumers to select them first.

See Also: Business Strategy vs Marketing Strategy: Main Difference

Diversification Strategies

It is known as the “growth strategy,” where the company enters a new market and introduces a new product different from its previous one. Some companies also resort to their former product lines to achieve profitability. When a business uses this strategy, it seeks out various markets by launching new items.

diversification strategy

Examples of Companies like Disney, Pepsi, Coca-Cola, and Volkswagen employ these techniques.

Therefore, these types of growth strategies will help your business grow.

See Also: What is the Marketing Strategy of Royal Enfield?


What is an intensive growth strategy?

Intensive growth strategies are not something everybody can master, and it requires research and analysis of the current market and the customer's desires. It refers to a company's various strategies to expand its product lines.

What are the types of intensive growth strategies?

Market penetration, product development, and diversification are intensive growth strategies. Diversification strategies are also classified as types of strategies.

What are the types of strategies?

Integration strategy, defensive strategy, intensive growth strategy, and diversification strategy are examples of strategies.

What are the advantages of an intensive strategy?

The advantage of an intensive growth strategy is increased sales and product awareness.

What are the two types of integration strategies?

Horizontal integration and vertical integration are the two types of integration strategies.

What companies use intensive distribution?

Netflix, Coca-Cola, and Doritos are some of the well-known companies that use intensive distribution as their primary tactic. Several companies use an intensive growth strategy to expand their brand and increase revenue.


This is the best strategy to expand your business and keep your current position. You explore the market; an intensive growth strategy is the best way to increase sales and gain profits with less risk to your current organization or company. These types of growth strategies have been very beneficial business strategies.

See Also: How to Generate Free Traffic for Affiliate Marketing?

Scroll to Top