Growth the Core
Some of the best opportunities come from growing the core—focusing on the most successful existing products and markets.
Growing the core can be a less risky alternative than expansion into new product categories. It strengthens a brand’s credentials as a source of authority and credibility and can yield economies of scale. Through improved revenues and lower costs, growing the core can also lead to greater profits.
UK marketing guru David Taylor advocates three main strategies for growing the core, citing these examples:
A focus on core businesses does not mean foregoing new market opportunities, especially if the core business is not expandable. However, marketers must avoid overestimating the up-side of new ventures that stretch the company into uncharted territory. “Marketing Insight: Understanding Double Jeopardy” describes how market leaders can benefit from brand loyalty due to their size.
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