Based on replaceable products in many industries there is a high competition. Some industries are in flux. In some areas there is the development and implementation of new technologies. A lot of additional market participants offer their products and services, e.g. in Germany in the area of renewables, whereas some business areas disappear. Established companies have to be very flexible and have to select adequate strategies to make profit. For a growth in sales especially the use of strategies focused on the customer, on markets and on the offer of products and services is very important.If you don't want to increase your sales by an acquisition, there are three main approaches.
On a short-term perspective there is the challenge to skim the market with existing and continually improved products and services. Customer requirements have to be fulfilled better than the competitor’s products and services can do. In this way in the ideal case in markets with a high competition and a nearly stable demand the company gains a firm turnover and in most cases only a small growth of sales. Nevertheless it is important to secure a good market position by offering an adequate range of products, a high quality and a very well service.
In a long term perspective in addition it is necessary to offer new products and services. Besides the coverage of customer requirements future needs have to be anticipated and appropriate products and services have to be developed and offered, for which the customer will pay, e.g. new applications for the mobile phone. Regarding a successful customer management it is very important that the innovative company involves the customer at an early stage into new ideas and possible solutions. In addition it is advisable to ask the customer for his expectations and requirements. With the early involvement of the customer the development time and costs of products and services can be reduced as well as the quality of the future product and services can be increased. In addition an early verification of the prospective acceptance of the new developed product and services and the realization of expectations and requirements of the customer increases the sales potential and improves the customer retention.
The third possibility to gain a growth in sales is to transfer existing products and services and know-how to new markets. There are a lot of examples of industries that produce and sell products in other countries for e.g. the German automobile industry in China. And it is said that e.g. in 2013 1.300 German companies of all sizes up to big groups were represented in Brazil. Depending on the country and the local regulations the access to new markets requires investments and might have a higher risk. But in the long run there are growth opportunities that do not exist in the domestic market.
For each approach a structured procedure and the use of appropriate methods and concepts is recommended. In the first case of existing products and well-known markets mainly the customer requirements have to be fulfilled. In the second case, when new products and services have to be developed for the existing market, amongst others methods to generate innovative products and services as well as cost/benefit methods have to be used. Regarding the third approach, where a company transfers existing products, services and know-how to a new market a more extended range of methods and concepts might be used. Customer requirements might slightly differ from the domestic market as well as local regulations have to be considered. Early warning systems can be recommended to monitor the risks and to be able to take appropriate measures if necessary.
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