Build The New Growth Engine
Growth is a systematic process that can be designed, managed, and achieved.
Enterprises need to shift from opportunistic growth to strategically driven growth. Using the framework of "Mindset – Pathways – Levers," companies can move from "accidental success" to "inevitable success."
I. Why Enterprises Need a Scientific Growth Strategy?
- Market competition is moving from competing for new growth to competing for existing demand and customers. Traditional extensive growth models (e.g., channel expansion, price wars) are yielding diminishing returns.
- Rising consumer sovereignty, accelerated technological disruption, and the interplay of globalization and localization have led to "non-linear competition."
- Companies face "growth anxiety": stagnation leads to decline, but blind growth accelerates failure.
- Growth is imperative for survival, but only sustainable, profitable, and structural growth matters.
- A scientific growth strategy enables companies to break away from homogeneous competition and discover uncontested market space.
II. Core Methodology of Growth Strategy: Three Strategic Pillars
Dr. Hu Cao proposes that enterprises must systematically reconstruct their growth logic across three dimensions:
- From an internal focus to a customer perspective: Growth stems from creating exceptional customer value, not merely optimizing internal efficiency.
- From zero-sum to value symbiosis: Co-create value with ecosystem partners to explore new markets.
- From mechanical to intelligent growth: Leverage AI and Martech to achieve precise, measurable, and efficient growth.
Enterprises can systematically uncover new growth opportunities through four pathways:
- Deepening Customer Value: Cultivate existing customers through value chain extension, servitization, and membership economies to maximize customer lifetime value.
- Redefining Market Boundaries: Reimagine market boundaries through scenario innovation, alternative solutions, and demand chain integration to enter uncontested spaces.
- Empowerment Through Digital Capabilities: Use data, AI, and Martech to reshape customer experience, optimize operations, and build new growth engines.
- Activating Organizational Systems: Build customer-centric organizations, foster internal entrepreneurship, and institutionalize growth enablers.
Identify and effectively utilize key growth accelerators:
- Product and Brand Levers: Build mission-driven brands and product portfolios that become customers' preferred choice.
- Channel and Touchpoint Levers: Create omnichannel, seamless customer experiences that influence decisions at every critical point.
- Globalization and Localization Levers: Balance global strategy with local execution to effectively enter and win in new markets.
III. The Growth Strategy Implementation Pathway
1. Diagnose and Gain Insight
Conduct a systematic evaluation of the current business model, growth bottlenecks, and market opportunities.
2. Strategize and Design
Select core growth pathways based on the three pillars and develop a customized growth strategy blueprint.
3. Execute and Implement
Optimize organizational structure, deploy key technologies (e.g., CDP, marketing automation), and launch pilot projects to ensure effective execution.
4. Internalize and Iterate
Embed the new growth mindset and methodology into organizational culture through executive workshops and training, fostering continuous iteration.
IV. Representative Case Studies
Background: A traditional industrial equipment manufacturer faced product commoditization, price wars, and stagnant growth due to a one-time sales model.
Strategy Applied: Deepening Customer Value
- Shifted from selling equipment to selling outcomes via a subscription-based "product-as-a-service" model.
- Integrated IoT sensors for predictive maintenance and efficiency optimization.
- Recurring revenue model enhanced company valuation.
- Significant increase in customer loyalty and high-margin service revenue.
2. New Consumer Brand
Background: A new F&B brand entering a saturated market dominated by giants.Strategy Applied: Redefining Market Boundaries
- Identified a new usage scenario (afternoon fatigue relief) and created a "light-function" beverage.
- Leveraged digital channels (e.g., Douyin, Xiaohongshu) and convenience store placements.
- Created a new sub-category and achieved rapid market recognition with minimal investment.
3. Traditional Retailer
Background: A regional supermarket chain suffering from declining footfall and low customer loyalty.Strategy Applied: Digital Empowerment
- Built a membership system and integrated online-offline data to create unified customer profiles.
- Implemented personalized marketing and community-driven activities.
- Higher repurchase rates and customer lifetime value.
- Reduced dependency on third-party platforms and data-driven decision-making.
4. Chinese Company Expanding Globally
Background: A Chinese home appliance brand expanding into Southeast Asia faced low brand awareness and cultural barriers.
Strategy Applied: Globalization and Localization Levers
- Maintained a consistent global brand image while adapting products and marketing to local needs (e.g., recipe apps for air fryers, local influencer collaborations).
- Successful market entry with localized appeal.
- Established brand value and sustainable growth foundation.
