What Is the Growth Strategy Framework?

This framework helps businesses understand how to grow — whether through internal expansion (organic growth) or by leveraging external opportunities (inorganic growth, like acquisitions or partnerships).

It breaks growth into clear levers so companies can choose the most feasible, scalable, and profitable path.

Why the Growth Strategy Framework Matters

• Every CEO and founder cares about growth
• Helps avoid random, unstructured expansion decisions
• Clarifies where growth can come from
• Separates quick wins from long-term bets
• Ensures resources go toward the highest-ROI levers
• Used in strategy cases, interviews, and real consulting projects

Growth is not one path — this framework makes it structured.

The Growth Strategy Framework (Two Main Paths)

1. Organic Growth (Internal Expansion)

Growth achieved through strengthening or expanding the company’s own capabilities.

Organic Growth Levers

A. Market Penetration

Grow within current markets by:

• Increasing usage frequency
• Improving product quality
• Reducing churn
• Better pricing
• Stronger marketing
• Increasing distribution reach

B. New Product Development

Build new features or offerings for existing or new customers.

Examples:

• Adding premium tiers
• Launching complementary products
• Introducing tech upgrades

C. Market Development

Expand the current product into new customer segments or geographies.

Examples:

• Entering Tier-2 cities
• Targeting enterprise customers
• Selling in new international markets

2. Inorganic Growth (External Expansion)

Growth achieved by leveraging outside entities, usually faster but riskier.

Inorganic Growth Levers

A. Partnerships & Alliances

• Distribution partnerships
• Co-branded products
• Tech integrations

Useful when you need reach without building everything from scratch.

B. Joint Ventures

Shared ownership to enter new markets or build new capabilities.

Examples:

• Fintech + bank JV
• Retail + logistics JV

C. Mergers & Acquisitions (M&A)

Fastest way to:

• Enter new markets
• Acquire capabilities
• Gain customers
• Eliminate competitors

But requires cultural fit, due diligence, and integration management.

Choosing Between Organic vs Inorganic Growth

Choose Organic When:

• Capabilities are strong
• Market has room to grow
• Lower risk appetite
• Long-term growth focus
• Limited capital

Choose Inorganic When:

• Speed matters
• Competitors are ahead
• Market entry barriers are high
• Need new capabilities quickly
• Have available capital / investor pressure

A strong strategy often combines both.

How to Apply the Growth Framework (Step-by-Step)

1. Diagnose the current business

• Which segments are growing?
• What capabilities do we have?
• What constraints limit growth?

2. Identify growth opportunities

Through market research, customer insights, and competitor analysis.

3. Evaluate organic levers

• Can we improve retention?
• Can we tap new segments?
• Can we scale distribution?

4. Evaluate inorganic levers

• Who could we partner with?
• Are there acquisition targets?
• Does a JV reduce risk?

5. Quantify impact & effort

Build a simple impact–effort matrix for each lever.

6. Prioritize and create a roadmap

The roadmap should balance:

• Quick wins
• Medium-term bets
• Long-term transformational moves

Mini Example: Growth Strategy Case

Client: A D2C skincare brand
Objective: 40% annual revenue growth

Organic options:

• Launch a premium anti-aging line
• Enter Tier-2 cities
• Improve website conversion
• Expand offline retail presence

Inorganic options:

• Acquire a small haircare brand
• Partner with beauty influencers
• Collaborate with a pharmacy chain

Recommended strategy:

• Short term: Improve conversions (organic)
• Mid term: Enter new cities (organic)
• Long term: Acquire complementary haircare brand (inorganic)

Balanced, sustainable, and scalable.

Common Mistakes to Avoid

• Choosing inorganic growth only for speed
• Overestimating internal capabilities
• Entering new markets without product fit
• Buying companies without integration planning
• Ignoring unit economics
• No prioritization across growth levers

Growth fails when not backed by strategy + execution discipline.

Where Consultants Use This Framework

• Growth strategy projects
• Due diligence
• GTM planning
• Market entry
• Product strategy
• Private equity work
• Case interviews

This is one of the most practical and frequently used frameworks in consulting.

Say next framework and I’ll draft Pricing Strategy Framework in the same structured style.

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Pricing Strategy Framework: Value-Based, Cost-Based & Competition-Based Pricing

What Is the Pricing Strategy Framework?

The Pricing Strategy Framework helps businesses determine the right price for a product or service by evaluating three core approaches:

👉 Cost-Based Pricing
👉 Competition-Based Pricing
👉 Value-Based Pricing

Pricing affects revenue, profitability, positioning, and customer perception — so it must be structured, not guessed.

Why Pricing Strategy Matters

• Small price changes can significantly impact profit
• Helps find the optimal balance between margin and demand
• Ensures prices align with customer willingness to pay
• Helps avoid being too cheap (losing profit) or too expensive (losing customers)
• Used heavily in real consulting work: GTM, growth, profitability, due diligence

Strong pricing = strong profitability.

The Three Pricing Approaches (Core Framework)

1. Cost-Based Pricing

Price determined by cost + desired margin.

Formula:

Price = Cost + Markup

Pros:

• Simple
• Ensures minimum profitability
• Good for commodity products

Cons:

• Ignores customer willingness to pay
• Ignores competitive pressure
• Can lead to underpricing or overpricing

2. Competition-Based Pricing

Setting price based on competitor pricing, market averages, or benchmarks.

Approaches:

• Price matching
• Price undercutting
• Premium pricing above competitors

Pros:

• Easy to justify
• Works in highly competitive markets
• Minimizes risk of mispricing

Cons:

• Doesn’t reflect unique value
• Risk of price wars
• Can race to the bottom

3. Value-Based Pricing (Most strategic)

Pricing based on customer willingness to pay and perceived value.

Key factors:

• Customer segment
• Use cases
• Pain point severity
• ROI delivered
• Brand strength
• Differentiation

Pros:

• Highest potential profit
• Aligns price with customer outcomes
• Works best for differentiated products

Cons:

• Harder to estimate
• Requires research and segmentation

How to Choose the Right Pricing Strategy (Step-by-Step)

1. Understand your economics

• Unit cost
• Break-even point
• Contribution margin
• CAC/LTV economics

2. Map competitors and substitutes

Benchmark against:

• Direct competitors
• Indirect alternatives
• DIY solutions

Look for price differences and positioning.

3. Identify customer segments & willingness to pay

Use:

• Surveys
• Interviews
• A/B tests
• Usage metrics
• Sensitivity experiments

Different segments may have different price tolerances.

4. Evaluate your value proposition

Ask:

• How differentiated is the product?
• Does it save time, improve ROI, reduce cost, or reduce risk?
• Does your brand command a premium?

Higher differentiation → higher value-based pricing potential.

5. Choose pricing model & strategy

Examples:

• One-time fee
• Subscription
• Tiered pricing
• Freemium
• Pay-per-use
• Bundling
• Dynamic pricing

Align the model with customer behavior.

6. Test and iterate

Run small experiments:

• Change price for a subset of users
• Offer bundles
• Introduce premium plans
• Increase price by 5–10% to assess elasticity

Pricing is rarely set once — it evolves.

Mini Example: Pricing Strategy Case

Client: SaaS analytics tool
Current issue: Underpriced vs value delivered

Analysis:

• Competitors charging ₹2,000–₹4,000/month
• Client charging only ₹1,200/month
• Customers reported 8–12% revenue uplift due to insights
• Churn stable even after a 10% price increase test

Insight:
Product delivers significantly higher value → customers are willing to pay more.

Recommendation:
Move to tiered value-based pricing:

• Basic: ₹1,500
• Pro: ₹2,800
• Enterprise: Custom

Estimated uplift: 20–25% revenue increase.

Common Pricing Mistakes

• Setting price only based on cost
• Copying competitors
• Not segmenting customers
• Using one fixed price for all users
• Ignoring price elasticity
• Not revisiting pricing regularly
• Underpricing premium offerings

Pricing is both a science and an art — avoid rigidity.

Where Consultants Use the Pricing Framework

• Profitability improvement
• New product launches
• Market entry
• Growth strategy
• M&A integration
• Case interviews
• Due diligence
• Consumer behavior studies

Pricing is one of the highest-ROI levers consultants work on.