The business world runs on growth. However, not all types of growth or growth engines are good. The type of growth engine, namely the underlying assets and capabilities of the company experiencing growth, should be in line with the company’s strategic objectives and business model. Otherwise, growth will not be consistent or sustainable.
The core elements of a growth engine are different based on the nature of the company and the industry it operates in. However, the basic components are a company’s key resources and capabilities, which provide a competitive edge necessary to the organization. These resources and capabilities manifest themselves in superior products, services, channels or processes. One important consideration is that these capabilities have an expiration date, meaning that the company will need to replenish its growth engine with new capabilities. Throughout this cycle, being consistent and running a sustainable growth engine is key. Otherwise, disruption by another market player is the inevitable outcome.
