Understanding Business Enterprise Development Stages


Business strategic plans vary depending on the business enterprise development.

There are generally four distinct stages, but not all of them are relevant to all companies.

Birth Stage

This applies to start-up business outfit, which are still battling initial stage problems. It may also apply to well established ones that are launching new products/services or entering new markets. The company needs the ability to take quick decisions and act fast to capitalize on available market opportunities. It also needs to work very close with its customers to publicize the product or service.

Consolidation and Expansion Stage

This is the stage of rapid development. The enterprise has to evaluate its policies and processes. This is to make sure that it has effective control in place for next stage of growth. The enterprise will continue to work with its customers for maximum coverage in its chosen market to achieve high market share.


Diversification Stage

This is the stage at which the company should adopt strategy that will allow it to capitalize on its main product and also to grow in some related areas. This may be the way the company can grow bigger since it is likely that its main market is already saturated. Diversification is an attempt to reduce risk of dependency on a single product, specific customers or particular market segment. Meanwhile, it is better to target diversification towards maximizing available opportunity at acceptable risk.

Decline and Renewal stage

Actually no business outfit plans to reach a stage of decline but it is an occurring phenomenon. In this type of situation, the company needs to develop a strategy that will enable it to survive and grow again. It is important that the strategy should explore all available opportunities and not over-biased towards avoiding risk with a view that it is the best way to survive.




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One Response
  1. March 16, 2011

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