What are the 4 types of growth?
In a business context, four commonly referenced types of growth are market penetration, market development, product development, and diversification. These growth paths help leaders think about where new revenue will come from existing or new products, and existing or new markets.
The four types:
Market penetration: Sell more of existing products or services to current customers or segments.
Market development: Take current offerings into new geographic, demographic, or industry segments.
Product development: Create new products or services for your existing customer base.
Diversification: Launch new offerings into new markets (the highest-risk form of growth).
Using these categories well:
Clarifies which growth path you are choosing and the risks, investments, and organizational capabilities required.
Helps your team align around a focused growth thesis rather than chasing every opportunity that appears.
Kindred Consulting Group uses these lenses inside a broader organizational framework:
Growth strategy is tied directly to structure, roles, and decision rights so your organization is designed to support the type of growth you pursue.
This ensures you do not choose "diversification" on paper while your organization is still set up only for basic market penetration.
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