Many perceive the concept of growth as something that is a very straightforward. However, there are a multitude of factors that need to be taken into consideration when developing a growth strategy for your company and brand. One aspect of growth that some tend to overlook when trying to expand is strong partnerships. Through partnerships, your company can team up with other powerful and driven companies to achieve that common goal of growth and recognition. Brand licensing is exactly that, a powerful partnership, an exceptionally viable growth strategy when done thoughtfully and with the right partners.
But how does it stack up against other traditional growth strategies?
Today the pressure to grow is unrelenting. Decision-makers seek it. Investors insist on it. Customers are buoyed by it. A growing company exudes confidence, prestige, and acceptance. People want to work for companies that they feel are going places, literally and figuratively. In part, that’s psychological. But, as McKinsey’s research shows, it’s also because there seems to be no alternative. Companies that are not growing are declining.
Companies pursue growth strategies for all sorts of reasons. They expand to incorporate new strengths; add new activities; explore new territories; become more competitive; explore potential; escape convergence, saturation, stagnation or commoditization; and much more. Too often though, as Laurence Capron observes, the motivation for growth is being able to claim growth, or at the very least evolution. Perhaps this is because managers feel they have little choice in the matter. “Companies must continually evolve to stay relevant, innovative, and competitive.”
Companies are under pressure to grow, but every action, and therefore every option, comes with risk. Standing still is dangerous, especially in dynamic sectors, but so is staying in one market, and so is diversifying into other markets. And size does nothing to lessen the riddle. As Marc Emmer says,
In my guide, Brand Licensing Versus Traditional Growth Strategies, I elaborate more upon growth and why brand licensing can be a viable growth strategy as it eliminates some of the risk associated with the pursuit of growth. Let’s talk about some of those risks:
For all its popularity, growth is far from a sure thing. The global management consultancy, Bain, asserts that in recent times 90 percent of companies worldwide have failed to achieve sustained, profitable growth. They cite three common reasons for this:
Nevertheless, it is imperative to carefully think about a growth strategy, and which direction to take, in order to grow in a manner that is appropriate for your business.
This guide answers just about every question you, as a manufacturer or licensee, might have about finding prospective brands, winning, and profitably running a licensing program.SEE DEtails
A brand strategy serves as the foundation for your product, your business, and your story. Without a foundation, one opportunity becomes indistinguishable from the next. This means that every opportunity must be pursued.SEE DEtails
By finding out who we are, why we exist and what we are meant to do, we become a brand that is alive. When we have a story to tell, a purpose to convey and a target to engage, we become worthwhile to our customers. That's when the real adventure begins!SEE DEtails