Understand the Differences between Good Growth and Bad Growth(2 / 2)

Goodgrowthisprofitableandcapitalefficient.Simplyput,goodgrowthearnsareturnhigherthanthatofferedbyothersafeinvestments.

Goodgrowthisalmostalwaysorganic—itresultsfromideasthatcomefromwithintheorganizationratherthanfromsomethingbroughtin.Organicgrowthoccurswhenyourpeopleworkwithcustomerstofindnewwaystouseyourproducts,servicesorexpertise,ortocapturenewmarkets.

Goodgrowthisdifferentiated.Itenablesyourproductsandservicestobeperceivedbythecustomerasbetterthansimilarofferingsmadebyothers.Thisdifferentiationmaybeachievedbyprovidingbetterdelivery,betteremotionalappealorabetterpost-purchaseexperiencethanyourcompetition.Somecompaniesdifferentiatethemselvesontheperformanceoftheirlogisticalsystemorotheraspectsofthesupplychain.

Goodgrowthisalwayssustainable.Itisnotanattempttogenerateaquickspikeinrevenuesbythrowingsubstantialresourcesataone-timeoffer.Instead,goodgrowthderivesfromactionsthatcancontinueyearafteryear.