Growth strategy begins with identifying the source of the problem – you will want to look at customers, products, the company and its competitors
THE frequently used term business growth simply describes the process of improving some measure of an enterprise’s success, ranging from promotion, product development, new market entry or improving employee productivity.
How can we more closely define the objectives a company desires when it speaks of growth?
Addressing this type of case question is achievable, provided you can identify the root of the problem.
Below we look at a specific case scenario.
Our client is the Museum of Fine Arts in Boston. They want to develop a growth strategy for the next five years. What would you advise them to look at, and what are your recommendations for growth?
Before we can begin discussing growth strategy, the direction of the case must be determined by asking vital questions regarding the current state of the museum.
- Competitors: How are other museums across the city performing? How are we growing relative to the industry?
- Customers: Who are our patrons? For example, they might be senior citizens and middle aged women. How is the mix changing over time, and what do they say about us?
- Product: Does our revenue come primarily from ticket sales or other sources? What distinguishes our offering from our competitors in regards to pricing, marketing, and curatorial development?
- Company: What is our cost structure? Do we have the financial backing to support higher growth?
Let’s assume Bostonians have decided to reduce spending on museums in favor of other leisure activities such as baseball games and musical performances. The stagnant growth our client is experiencing is caused by a decline in the industry overall.
My recommendation would be to increase revenue by attracting new audiences to the museum by investing in popular exhibitions supported by a major marketing campaign. Engaging local teenagers and university students through social media promotions would increase awareness of new museum programming. By appealing to a wider and younger audience, our client could attract visitors who previously were uninterested in the museum’s offerings, leading to more sustainable ticket sales over the next five years.
What recommendations would you provide the Museum of Fine Arts? Share your thoughts in the forum. The person who provides the best response in the next 48 hours will win a copy of Marc Consentino’s Case In Point (or another book from the Bookshelf).
The scenario above is adapted from Case In Point, a case interview preparation book written by Marc P. Consentino. Case scenario used in the book looked at the New York City Opera. Many firms use a version of this case.
For a more in-depth look at growth strategy, check out this case study by McKinsey that outlines the Three Horizons of Growth framework to develop a growth strategy for a major retailer.