Instead of growing by launching new products and conquering new markets, companies must narrow their focus with a seven-step stretagy, according to experts Sanjay Khosla and Mohanbir Sawhney, who mention examples such as Kraft Foods, Unilever and Fonterra Brands.
Many business leaders continue to pursue growth by expanding existing product lines and brands, as well as exploring new geographic regions. After all, the growth is always seen as “more”: more products on the shelves, more categories, more brands and more markets.
However, this approach is exactly the opposite of what executives should do to increase revenue and profit. The traditional “grow with more” strategy dissipates the organization’s efforts, as well as increasing complexity of the company and its operations.
The best growth recipe, regardless of the economic environment, is “grow with less”, which means, more precisely, “grow with focus”.