Why Do Businesses Grow?
- Jojo owns a small bakery.
- Jojo's pastries are popular, but Jojo faces rising ingredient costs and fierce competition.
- How can you ensure your business thrives?
- Growth might be the answer.
Motivations for Business Growth
1. Increasing Profits
Higher Sales Revenue: Growth enables businesses to reach more customers, increasing sales.
ExampleWalmart's bulk purchasing power allows it to offer low prices while maintaining profitability.
2. Gaining Market Share
Dominance: Growing businesses can capture a larger share of the market, reducing competition.
ExampleAmazon's expansion into various sectors (e.g., cloud computing, streaming) has solidified its market leadership.
Pricing Power: Increased market share allows businesses to influence prices, giving them a competitive edge.
ExampleCoca-Cola's global presence enables it to set prices that smaller competitors struggle to match.
3. Enhancing Competitiveness
Innovation: Growth often funds research and development, leading to innovative products and services.
ExampleTesla's growth has fueled advancements in electric vehicles and renewable energy.
Brand Recognition: Expanding into new markets increases brand visibility and customer loyalty.
ExampleNike's global expansion has made it a household name in sportswear.
