3 Alternative Growth Strategies that Avoid the Pitfalls of Brute Force
For most companies we’ve worked with, growth is not just a goal but a necessity. Strategies for achieving growth can vary significantly; some companies choose an adjacent market strategy, others a land grab strategy, and still others a diversification strategy — or some other approach.
What is your growth strategy? In some recent conversations, it seemed I was frequently hearing what I would call a brute force strategy. What do I mean by that? I’m referring to a strategy characterized by substantial investments in downstream marketing, rapid geographic expansion, or aggressive acquisition strategies without a nuanced understanding of market dynamics or customer needs.
Brute Force in Action: The WeWork Case Study
One of the most cited examples of a brute force strategy is WeWork, a provider of physical and virtual shared spaces founded in 2010 and headquartered in New York City. Within five years of its start, the company reached a valuation of $10 billion with offices in 32 locations. Its number of clients grew to over 23,000 all over America.
The coworking space company pursued an aggressive expansion plan, investing heavily in new locations and downstream marketing efforts — and this brute force approach initially worked. WeWork achieved rapid growth and a high valuation. In 2019, the company filed for an initial public offering (IPO) but the attempt was withdrawn due to concerns over its business model and financial stability. Ultimately, WeWork’s strategy proved unsustainable, leading to a significant reduction in its market valuation and a restructuring of its business operations. By 2023, WeWork, once valued at $47 billion, filed for Chapter 11 bankruptcy protection with debts soaring to $18.65 billion against its assets of $15.06 billion.
Growth Strategies that Help You Leave Brute Force Behind for Good
Yes, brute force tactics can yield results. However, they often come with high risks and significant costs as illustrated by the WeWork story. Fortunately, there are more sustainable and strategic alternatives. The following are three alternatives we encourage business leaders, along with their boards and advisors, to consider:
1. Strategic Partnerships, Acquisitions, and Alliances: Strategic partnerships, acquisitions, and alliances involve collaborating with other businesses to achieve mutual goals. Unlike brute force, which often involves going it alone, this approach leverages the strengths and capabilities of multiple entities to drive growth. Alliances, partnerships, and acquisitions can provide access to new markets, technologies, and expertise.
You’re reading this article on LinkedIn, which was launched on May 5, 2003. Within 10 years, LinkedIn reached 225 million members and was growing at more than two members per second. In 2011, LinkedIn went public, and its initial valuation was $4.3 billion. By 2013, it had 400 million members.
Acquisitions played a key part of LinkedIn’s growth strategy — 16 of them between 2011 and 2016. Then in June 2016, Jeff Weiner, executive chairman at LinkedIn, announced, “We are joining forces with Microsoft to realize a common mission to empower people and organizations. LinkedIn’s vision — to create economic opportunity for every member of the global workforce — is not changing and our members still come first. Our companies are the world’s leading professional cloud and network. This deal will allow us to keep growing, investing in and innovating on LinkedIn to drive value for our members and our customers.”
Microsoft paid $26 billion for LinkedIn in 2016 when the platform had 433 million members worldwide. This partnership allowed Microsoft to integrate LinkedIn’s vast network and data with its own suite of productivity tools, creating new opportunities for both entities. The synergy between Microsoft’s software and LinkedIn’s professional network has enabled the creation of integrated solutions that offer enhanced value to customers, driving growth for both companies.
As of April of this year, LinkedIn had 990 million registered users worldwide, adding about three new members every second.
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Why It Works: Partnerships, acquisitions, and alliances work because they allow companies to leverage each other's strengths, reduce costs, share risks, and innovate more effectively. For B2B companies, this can lead to shared research and development efforts, co-marketing opportunities, and expanded distribution channels. A cooperative approach like this often results in faster time-to-market and an enhanced competitive advantage. What kind of strategic partnerships or alliances could you form, or is there an acquisition that would make sense?
2. Customer-Centric Innovation: This is probably one of my favorite alternatives to brute force. Customer-centric innovation entails developing products and services based on deep insights into customer needs and preferences. Instead of pushing products into the market through brute force, this approach focuses on creating value that naturally attracts and retains customers. It emphasizes understanding customer pain points and aspirations and designing solutions that meet those needs more effectively than competitors.
I’m a fan of 3M to illustrate this strategy, as it has excelled through customer-centric innovation. 3M places a strong emphasis on understanding its customers' needs across various sectors. The company establishes customer innovation centers, typically located near company research facilities, that provide a forum for meeting with corporate customers and engaging them directly in the innovation process. The company opened its first customer innovation center in 1997. By 2011, it had 30 centers. By 2018, there were 75.
By closely collaborating with customers, 3M develops tailored solutions that address specific industrial challenges. One example of a 3M innovation developed collaboratively with customers in the healthcare sector was the creation of its advanced wound care products. In late 2023, 3M spun off Solventum, a standalone $8 billion healthcare company that includes the wound care product line.
Why It Works: Customer-centric innovation works because it ensures the products and services a company offers are precisely what the market demands. By aligning offerings with customer needs, companies can achieve higher customer satisfaction, loyalty, and advocacy. This approach drives sales and fosters long-term customer relationships that enable sustainable growth. How could you engage your customers in the innovation process?
3. Data-Driven Decision-Making: Data-driven decision-making involves using data analytics and insights to inform strategic decisions. This method contrasts with brute force approaches that may rely more on intuition and experience. With the power of data, companies can make more informed, precise, and timely decisions that optimize business performance and growth.
Amazon accounted for 37.6% of the U.S. ecommerce market in 2023, with 63% of Americans saying they have bought an item through the company. Among online shoppers, 92% have used Amazon. I believe it is safe to say Amazon provides an excellent example of a company leveraging data-driven decision-making for growth. The ecommerce giant uses data analytics across all aspects of its business, from inventory management and pricing strategies to personalized recommendations and customer service. Amazon’s ability to analyze vast amounts of data enables it to optimize operations, enhance customer experiences, and predict market trends, all of which contribute to its formidable growth trajectory.
Why It Works: Data-driven decision-making works because it minimizes guesswork and maximizes efficiency. For B2B companies, this approach can lead to more effective upstream Marketing — Marketing with a capital M — along with improved operational efficiency and better risk management. What decisions based on concrete data could help you reduce costs, increase profitability, and stay ahead of competitors?
Ditch Brute Force and Switch Your Growth Strategy Today
While brute force strategies for business growth may have their place, they are often accompanied by high costs and risks. In today’s complex and fast-paced business environment, more strategic and sustainable alternatives are essential. Strategic partnerships, acquisitions, and alliances; customer-centric innovation; and data-driven decision-making offer viable paths to growth that can yield significant and lasting benefits.
We encourage business leaders and their boards and advisors to consider these alternatives to ensure their companies not only grow but thrive in the long run. Need help exploring how to adopt these approaches? Let’s have a conversation and set the stage for your company’s long-term success.
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2moAbsolutely agree with this sentiment. Brute force strategies may be quick, but can often lead to pitfalls down the road. These alternative growth strategies sound like a sustainable solution. Curious to know more details about their implementation.
Fractional CMO and B2B Marketing Expert
2moExcellent article Laura Patterson. Most companies can't afford a follow-the-leader brute force strategy and this requires innovation applied consistently.
Visionary, Strategy & Innovation enabler | LinkedIn Top Voice, Influencer, Blogger, Speaker | Startup> Guru, Founder, Advisor, Board Member | Fortune 500 Trainer | Looking for Visionaries!
2moI love the way you've shared these thoughtful alternative growth strategies. They highlight key growth methods, though there's an often-overlooked factor: mindset. Sustainable growth often hinges on something deeper. When innovation leaders focus solely on acquisitions and strategic partnerships, without addressing internal culture, they risk replicating the same inefficiencies. Mindset barriers frequently limit even the best partnerships from reaching their potential. What about exploring mindset shifts for long-term growth? 🌱