Analysis of business growth strategies and their contribution to business growth

Abstract

Growth is the most frequently used corporate strategy. It means increasing sales, assets, net profits and a chance to take advantage of the experience curve to reduce the per unit cost of products sold and thereby increasing profits. Business growth can be realized through several different indicators. The indicators can be grouped under four categories namely; business outcomes, business outputs, capacity and qualitative indicators. In most recent years it has been argued that most of Tanzanian companies have been experienced a slanted growth the situation which is reflected in few companies being listed in the country’s stock exchange company, the Dar es Salaam stock exchange (DSE). Among the reason sought for few companies listed on DSE are most of the companies failing to grow in terms of profit for three consecutive years which is one of the conditions for a company to be listed and inability of most of company managers to execute growth strategies effectively. Limited studies have been done to explore the application of growth strategies for Tanzania companies. This paper analyses the application and implementation of different business growth strategies in Tanzania context. It highlights how different businesses have benefited from these growth strategies.