Introduction
Growth management in any organization is vital for entrepreneurial success once the formal business registration and inception processes have been completed. Various business stages present different challenges and opportunities which require a portfolio of provisions such as outstanding leadership, continuous product improvement, and understanding of the market. Managing growth in the entrepreneurial sector, therefore, necessitates an innovative approach by the stakeholders to ensure the businesses succeed (Bhatia, et al., 2021). Netflix, Tesla Motors, and Zoom are among many other companies that have experienced exponential growth in their markets.
Strategic Focus During the Companies’ Early Growth
Netflix is a company operating in the entertainment industry focusing on the use of technology to grow the customer base and eventually the revenues. At its early growth stages, the company’s strategy was to continue improving the entertainment products to reach out to a wider market (Mier & Kohli, 2021). In the early stages, Tesla Motors was guided by the strategy of doing something different from the other players in the market. The leadership of the company wanted to disrupt the status quo by the introduction of environmentally sustainable car products (Thomas & Maine, 2019). Zoom was designed to disrupt the normal way of meeting where people would physically avail themselves in physical offices. The founder had a strong vision that something needed to be done to enhance effective web conferences (Archibald, et al, 2019). Zoom’s strategy at the early stages involved constant improvement with a focus on creating a seamless consumer experience.
Core Areas of Focus
The three companies leverage on different aspects to strategically position themselves in the markets and satisfy their customers. Netflix has grown into a great venture and its geographical outreach has expanded to a global status. The company thrives on innovation to create an undisrupted customer experience. Netflix also has a wide range of entertainment products from which subscribers can choose. The system is operated using an advanced streaming technology that personalizes subscribers’ experiences (Rataul, et al, 2018). The company’s technology can effectively suggest other movies a subscriber can find entertaining based on their past preferences and tastes.
Tesla Motors leverages on many years of experience in innovation geared towards improving the experience of their customers. The company has a diversified portfolio of products ranging from luxury cars to efficient heavy long-haul trucks (Chen & Perez, 2018). Similar to Netflix, Zoom depends on a powerful technology that offers a simple and efficient user experience to facilitate web conferencing. The three companies strategically position their brands for increase their profitability.
Changes of Strategies in Later Growth Cycles
Netflix and Zoom share a similar path in the way their strategies shift in their later growth cycles. These two companies have concentrated on market analysis and classification to ensure that their products satisfy the needs in each market. Having developed their software technology to be of astounding quality, they now focus more on customer value delivery. Tesla Motors also banks on effective leadership and partnerships with other emerging technologies such as cryptocurrency. These provisions enable Tesla Motors to sell directly to customers unlike other players in the market. Tesla minimizes costs related to middle dealings between the company and the ultimate customers (Chen & Perez, 2018). By creating a working value chain, the company’s leadership can further their research on different markets to continue to deliver high-quality products.
Some Peripheral Markets
Netflix is available in many countries apart from the United States of America. The company has reached a global market level service in more than 190 countries with its great streaming services (Mier & Kohli, 2021). In each country, the content supplied is different based on language, culture, and preferences of customers in the specific markets. Similarly, Zoom is available globally since it is a web-based conference tool. It has gained a lot of recognition during the Covid-19 pandemic when in-person meetings are being discouraged by health officials (Archibald, et al, 2019). Some peripheral markets for Tesla include China, Netherlands, Hong Kong, and Australia. The company sells physical products, unlike Netflix and Zoom whose brands are services based on the internet.
Growth by Acquisitions
Netflix has so far grown without acquiring another business on the way. Zoom is currently considering the acquisition of a company called Five9 that makes software for contact centers. This acquisition could add to the company’s services and revenue lines making the business more profitable if well managed (Levi, 2021). Tesla has made several acquisitions in its lifetime to enhance its business and make its operations more efficient. SolarCity Corp. is an example of companies acquired by Tesla in 2016 (Song, 2019). Other companies similarly acquired by Tesla are Maxwell Technologies Inc. and Perbix Machine Co. Inc.
Conclusion
Entrepreneurship is a continuous process comprised of challenges and opportunities in the different growth cycles of businesses. It requires a combination of an entrepreneurial skillset, mindset, and leadership capabilities to steer a business on the right path. Strategic positioning is always critical at all stages as evident in the three companies discussed. Starting an investment might not be an easy task but leading the business through the growth cycles can equally be challenging. However, with steadfast planning and visionary leadership, companies can achieve successful rapid growth.
References
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