Growth Pathway # 2: Exit the Market

If your company’s organic growth has hit a plateau or is in decline, leaving the current market is an option that should be seriously considered before you embark on any other growth solutions. As I previously mentioned, growth does not necessarily mean getting bigger. Sometimes the best pathway to growth is to get out of the market you are in. For example, last year, Nike divested Umbro and Cole Haan. This will allow Nike to focus on its core competencies and the areas they want to grow.


Divestment will allow Nike to focus on its core competencies

This post is part of a series on considering your options for growth. Read the introduction here. The five pathways to growth are:

  1. Grow Organically
  2. Exit the Market
  3. Be the Low-Cost Provider
  4. Do Nothing
  5. Pursue External Growth
Image courtesy of llamnuds

2 pings

  1. […] I’ve mentioned before, although divestment means becoming smaller, it can be pathway to growth. By trimming and pruning […]

  2. […] We often talk M&A in the context of exploring your five options for growth, one of which is exiting the market. Divesting can be an excellent strategy to recalibrate your business and focus on your strategic […]

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