Growth Pathway # 3: Be the Low Cost Provider

Sometimes organic growth can be achieved by dramatically cutting costs. I call this the “jellyfish strategy” : you go up when the tide is up and out when the tide goes out. There may not be many natural predators, so you will survive, but this approach is unlikely to drive long-term expansion.

Note, that being the lowest cost provider is distinct from being the lowest priced. We have a client that makes quality dog food cheaper than any other player, but they sell it at market price. Their strength lies in their operations and technology, and all the benefit goes to their bottom line.

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
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