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What is Intensive Growth Strategy?
An intensive growth strategy focuses on expanding a company’s performance by increasing sales of existing products within existing or new markets, without fundamentally changing the business model. It emphasizes deeper market penetration and stronger market presence.
Definition
Intensive growth strategy is a business growth approach that seeks to increase revenue by maximizing performance within current products and markets through penetration, market development, or product improvement.
Key Takeaways
- Concentrates on growth from existing capabilities.
- Involves market penetration, market development, or product development.
- Typically lower risk than diversification strategies.
Understanding Intensive Growth Strategy
An intensive growth strategy aims to extract more value from what a company already does well. Rather than diversifying into unrelated products or markets, the firm focuses on strengthening its position in familiar areas.
This strategy is commonly associated with the Ansoff Matrix, where intensive growth aligns with market penetration, market development, and product development strategies. Companies may invest in marketing, pricing adjustments, distribution expansion, or incremental innovation to drive growth.
Because it builds on existing competencies, intensive growth is often more cost-effective and manageable than diversification, especially for small and medium-sized enterprises.
Types or Variations
Market Penetration: Increasing sales of existing products in existing markets.
Market Development: Entering new geographic or demographic markets with existing products.
Product Development: Improving or extending products for current markets.
Real-World Example
A retail chain increases sales by opening more outlets in underserved regions and launching loyalty programs to encourage repeat purchases—an example of intensive growth through market penetration and development.
Importance in Business or Economics
Intensive growth strategies help firms scale efficiently, defend market share, and improve profitability. They are particularly effective in competitive markets where operational excellence and customer loyalty are key drivers of success.
Related Terms
- Ansoff Matrix
- Market Penetration
- Product Development
Sources and Further Reading
Quick Reference
- Focus: Existing products and markets.
- Risk Level: Lower than diversification.
- Tools: Marketing, pricing, distribution, innovation.
Frequently Asked Questions (FAQs)
How does intensive growth differ from diversification?
Intensive growth builds on existing products and markets, while diversification involves new products or new industries.
When is intensive growth most effective?
When a firm has strong products, brand recognition, and room to expand market share.
Is intensive growth sustainable long term?
Yes, but it may eventually require diversification as markets mature.
