5 Business Strategies That Generated Billions (With Examples)
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Published:
November 27, 2023
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6 minutes
Have you ever wondered about the key strategies that propel businesses to new heights? And what KPIs should you use to measure the efficiency of any strategy? Well, in this article, we will discuss the five growth strategies that businesses from around the world have used to increase market share, decrease risk, and generate billions in revenue.
The format of this article is very convenient. First, we’ll discuss each strategy in detail, followed by a real-life example. No, this isn’t one of those listicle-type blogs that only scratches the surface—this is a comprehensive article with practical examples.
We’ll only discuss the strategies that have already succeeded.
So, let’s dive into it.
The format of this article is very convenient. First, we’ll discuss each strategy in detail, followed by a real-life example. No, this isn’t one of those listicle-type blogs that only scratches the surface—this is a comprehensive article with practical examples.
We’ll only discuss the strategies that have already succeeded.
So, let’s dive into it.
KEY TAKEAWAYS
- The Blue Ocean Strategy aims to create uncontested market space by introducing products or services that stand apart from existing competition.
- Mergers and acquisitions allow companies to expand their market share, enhance capabilities, or gain a competitive edge by either acquiring or merging with other entities.
- Market segmentation involves dividing the market into smaller segments based on shared characteristics, preferences, and behaviors.
- Diversification is a strategic move where a company expands its market presence by introducing new products or services or entering new geographical regions.
- E-commerce integration enhances customer experiences, extends reach to a broader audience, and positions the business to adapt.
1. Blue Ocean Strategy
To understand the Blue Ocean Strategy, let’s first shed some light on the terms ‘red oceans’ and ‘blue oceans’. So, a red ocean refers to markets that are filled to the brim with rivals and have cut-throat competition. On the other hand, the blue oceans are calm and untapped markets with no competition. The Blue Ocean Strategy is all about creating a "blue ocean" of opportunities where business owners can swim freely without the constraints of existing competition.
So, instead of engaging in head-to-head battles with rivals, companies practicing this strategy strive to make competitors obsolete by offering unparalleled and innovative value to customers. In layman’s terms, companies create an entirely new market or product type that has never existed before, and thus, doesn’t have any competitors.
Want to learn the Blue Ocean Strategy in detail? Feel free to check out Consultport Academy’s Bootcamp 6: Innovation Strategy which encompasses topics like the Technology Adoption Curve, Company Life Cycle Model, and the Blue Ocean Strategy.
Back in the day, the circus industry was characterized by traditional performances featuring animals, clowns, and acrobats. Recognizing the limitations and declining interest in this usual approach, Cirque du Soleil embraced the Blue Ocean Strategy. Basically, Cirque du Soleil fused elements of theater and circus arts to create a whole new genre of live entertainment. The result was a performance that appealed to a broader audience, including those who typically avoided traditional circuses. The company has generated billions in revenue so far and is still popular.
Many businesses also hire Mergers and Acquisitions consultants who can help them streamline decision-making, oversee due diligence, and facilitate smooth integration. Furthermore, an M&A consultant can also help companies identify target companies, conduct a business valuation, and figure out the best financing structure for mergers and acquisitions.
This strategy acknowledges that a one-size-fits-all approach may not resonate equally with all consumers. You see, not everybody loves baseball, some love golf, too. This means it’s hard to sell baseball caps to golf fans. Therefore, by identifying and targeting specific segments, businesses can create more personalized and relevant offerings.
Nike seems to have mastered market segmentation brilliantly. By crafting specialized product lines for diverse sports and lifestyles, Nike ensures relevance for each consumer segment. When you open the Nike website, you’ll find the three main sections: men, women, and children. Since we were talking about different sports earlier, look at how Nike has segmented their products based on different sports. That’s how market segmentation is done like a pro! Good on you, Nike.
By embracing market diversification, you can proactively address the inherent risks associated with over-dependence on a single market. This fortifies your adaptability and capacity to navigate evolving markets. So, in case one product line fails, you should already have a few more in place to ensure that your business keeps thriving.
Now, if you’ve decided to give market diversification a shot, there’s a strategic tool that can guide you through the process: the Ansoff Matrix. It is a strategic planning tool that helps businesses consider different growth strategies, and it can be particularly useful in the context of market diversification. Find out how in the following article: How to Build Powerful Strategies Using the Ansoff Matrix.
As an example, let’s consider Apple's strategic attack into diverse product categories beyond personal computers. Sure, Apple has the famous iPhone and MacBook as two of its leading products. But don’t forget about the iPad and Apple Watch—each designed for a different audience. Apple Watch, for instance, generated $5.5 billion in revenue in 2019. This bold market diversification lessens reliance on a single market segment and strengthens the position of the company.
So, instead of engaging in head-to-head battles with rivals, companies practicing this strategy strive to make competitors obsolete by offering unparalleled and innovative value to customers. In layman’s terms, companies create an entirely new market or product type that has never existed before, and thus, doesn’t have any competitors.
Want to learn the Blue Ocean Strategy in detail? Feel free to check out Consultport Academy’s Bootcamp 6: Innovation Strategy which encompasses topics like the Technology Adoption Curve, Company Life Cycle Model, and the Blue Ocean Strategy.
Real-life example: Cirque du Soleil
(Image: Michelle_Raponi on Pixabay)
Back in the day, the circus industry was characterized by traditional performances featuring animals, clowns, and acrobats. Recognizing the limitations and declining interest in this usual approach, Cirque du Soleil embraced the Blue Ocean Strategy. Basically, Cirque du Soleil fused elements of theater and circus arts to create a whole new genre of live entertainment. The result was a performance that appealed to a broader audience, including those who typically avoided traditional circuses. The company has generated billions in revenue so far and is still popular.
2. Mergers and Acquisitions (M&A)
Sometimes, two is better than one. Mergers and Acquisitions (M&A) represent a strategic business approach wherein two or more companies aim to expand their market share, enhance capabilities, or gain a competitive advantage by either acquiring or merging with other entities. Usually, companies pursue M&A for several reasons, including accessing new markets, leveraging complementary strengths, or achieving economies of scale.Many businesses also hire Mergers and Acquisitions consultants who can help them streamline decision-making, oversee due diligence, and facilitate smooth integration. Furthermore, an M&A consultant can also help companies identify target companies, conduct a business valuation, and figure out the best financing structure for mergers and acquisitions.
Real-life example: Pixar’s merger with Disney
Disney's acquisition of Pixar in 2006 exemplifies an excellent use of M&A. Disney didn’t just expand its animated film portfolio, it also gained access to Pixar's creative brilliance and technological innovations. Thanks to Steve Jobs, the founder of Pixar. This synergistic collaboration revitalized Disney's animation and fostered a blend of creativity and global market dominance. This acquisition showcased how M&A can make two companies more powerful than they were prior to merging.3. Market Segmentation
They say that if you talk to everyone, no one would want to listen. So, to ensure that you get attention, you should appeal to a specific niche. That’s when market segmentation comes into play. It is a strategic marketing approach that recognizes the diversity of consumer needs within a broad target market. Basically, it involves dividing the larger market into smaller, more manageable segments based on shared characteristics, preferences, and behaviors.This strategy acknowledges that a one-size-fits-all approach may not resonate equally with all consumers. You see, not everybody loves baseball, some love golf, too. This means it’s hard to sell baseball caps to golf fans. Therefore, by identifying and targeting specific segments, businesses can create more personalized and relevant offerings.
Real-life example: Segmentation on Nike’s website
(Image: www.nike.com/au)
Nike seems to have mastered market segmentation brilliantly. By crafting specialized product lines for diverse sports and lifestyles, Nike ensures relevance for each consumer segment. When you open the Nike website, you’ll find the three main sections: men, women, and children. Since we were talking about different sports earlier, look at how Nike has segmented their products based on different sports. That’s how market segmentation is done like a pro! Good on you, Nike.
4. Diversification
Market diversification involves expanding a company's market presence either by broadening its product or service offerings or by entering new geographical regions. You see, depending on the usual products or location is like putting all your eggs in one basket. To make your company more resilient, you could try to enter new markets or introduce new products that are bound to yield high profits.By embracing market diversification, you can proactively address the inherent risks associated with over-dependence on a single market. This fortifies your adaptability and capacity to navigate evolving markets. So, in case one product line fails, you should already have a few more in place to ensure that your business keeps thriving.
Now, if you’ve decided to give market diversification a shot, there’s a strategic tool that can guide you through the process: the Ansoff Matrix. It is a strategic planning tool that helps businesses consider different growth strategies, and it can be particularly useful in the context of market diversification. Find out how in the following article: How to Build Powerful Strategies Using the Ansoff Matrix.
Real-life example: Apple’s diverse range of products
(Image: Pexels)
As an example, let’s consider Apple's strategic attack into diverse product categories beyond personal computers. Sure, Apple has the famous iPhone and MacBook as two of its leading products. But don’t forget about the iPad and Apple Watch—each designed for a different audience. Apple Watch, for instance, generated $5.5 billion in revenue in 2019. This bold market diversification lessens reliance on a single market segment and strengthens the position of the company.
5. E-commerce Integration
The projected market volume of the e-commerce market is expected to be $4,703 billion by 2028. Even if you get a very small share of this gigantic pie, your company could make millions. Now, at its core, this approach involves the seamless convergence of traditional brick-and-mortar operations with an online platform. In simple terms, whatever it is that you’re selling, sell it online, too!
By blending physical and digital retail channels, you can enhance customer experiences, extend reach to a broader audience, and stay agile in an ever-changing market. Don’t forget that the future of business is digital. So, find yourself a digital transformation consultant, and get started with e-commerce integration as soon as possible.
Woolworths Group, a leading Australian supermarket retailer, has strategically embraced e-commerce integration to enhance customer experience. Recognizing the increasing demand for online shopping and changing consumer preferences, the supermarket giant has actively invested in creating a seamless omnichannel retail experience. The e-commerce website lets customers create their personal accounts, browse products conveniently, place online orders, access special offers, and much more.
And that brings us to the end of the article. Remember, there are many more strategies that you could employ to skyrocket your growth. However, the ones mentioned in this article should give you a headstart and help you initiate the brainstorming process. You’re encouraged to read about more real-life examples to gain inspiration. Also, read business failure case studies to avoid mistakes that others have made. Keep growing, keep learning. All the best.
By blending physical and digital retail channels, you can enhance customer experiences, extend reach to a broader audience, and stay agile in an ever-changing market. Don’t forget that the future of business is digital. So, find yourself a digital transformation consultant, and get started with e-commerce integration as soon as possible.
Real-life example: Woolworths’ e-commerce website
(Image: www.woolworths.com.au)
Woolworths Group, a leading Australian supermarket retailer, has strategically embraced e-commerce integration to enhance customer experience. Recognizing the increasing demand for online shopping and changing consumer preferences, the supermarket giant has actively invested in creating a seamless omnichannel retail experience. The e-commerce website lets customers create their personal accounts, browse products conveniently, place online orders, access special offers, and much more.
And that brings us to the end of the article. Remember, there are many more strategies that you could employ to skyrocket your growth. However, the ones mentioned in this article should give you a headstart and help you initiate the brainstorming process. You’re encouraged to read about more real-life examples to gain inspiration. Also, read business failure case studies to avoid mistakes that others have made. Keep growing, keep learning. All the best.
