What is typically a focus during the growth stage of the firm lifecycle?

During the growth stage of the firm lifecycle, a primary focus is typically on market expansion. This phase is characterized by businesses seeking to increase their market share and scale operations. As companies experience increased sales and revenue, they concentrate on leveraging this momentum to tap into new markets, enhance distribution networks, and attract a larger customer base.

Market expansion during the growth stage allows firms to capitalize on their growing brand recognition and demand for their products or services. This strategy often involves exploring new geographic areas, customer segments, or even international markets. Growth firms are likely to invest in marketing campaigns and sales forces to support these efforts, aiming to solidify their position and fend off competition.

In contrast, other strategies such as cost reduction or cutting down on expenses are more associated with maturity or decline phases, where firms focus on optimizing operations to maintain profitability. Product diversification can also occur, but it is often a strategy within broader market expansion efforts rather than a sole focus during growth.