However, a vertical growth strategy is typically more lucrative and can result in better long-term ROI. This might be product localization issues or industry-specific business aspects. By scaling horizontally, you might face additional challenges, unique to the markets you are targeting. Horizontal growth typically means expanding the product or service to new markets, be it new geographies or business domains. There is one more proven strategy to consider. Yet, vertical growth isn’t the only way to scale your startup. Instagram growth strategy has been always focused on new twists and features: photo filters, messaging (including audio), photo and video stories, multiple content pieces in one post, etc.
VERTICAL HORIZON DEFINITION ECONOMICS FOR ANDROID
Then, Instagram was launched for Android phones, and by March 2012, the app had more than 20 million users. The iOS app was first released in October 2010 gathering 25 000 users in just one day.
Later on, the focus was set on the photos made specifically with a smartphone camera. It was created as a check-in app with a twist – you could share your photos there.
VERTICAL HORIZON DEFINITION ECONOMICS HOW TO
Read also: How to develop a social media appĪnother example of the vertical growth strategy is a renowned Instagram app. Thanks to Snapchat growth strategy (and, most importantly, years of hard work and a little bit of luck), the company was able to score $2.65 billion in funding and recently went public at a $29 billion valuation. The smart glasses with a built-in camera integrated with the app which allows users to record and share first-person videos on the go. The company further expanded its reach with another product (which is, however, complementary to the existing solution) – the Spectacles. Yet, Snapchat didn’t stop with growing the app’s functionality. Furthermore, the company was able to grow to a point where the long-established market leaders started copying the product. By adding more features such as video sharing, chat, stories, and its cutting edge feature – lenses (augmented reality effects added to the photos and videos in real time). Currently one of the most talked about startups, it started out as a person-to-person photo sharing service with a twist – the disappearing message.
Vertical vs horizontal growth strategy Vertical growth These are two types of organic strategies: vertical and horizontal. Organic strategies mean that a startup grows within itself: by expanding to a new market or developing the main product. Basically, a fresh business idea enriches an existing product or product line. Non-organic strategies imply merging a startup with an established company. New businesses have to define their core proposition and value for customers before making any further steps – it is a road already traveled for existing businesses.įirst, there are two types of growth strategies to choose from: organic and non-organic. Usually, strategies for startup growth differ from that of established companies. What is a growth strategy?Ī growth strategy is a long-term business plan that aims to increase the company’s revenue, audience, and market share. In this article, we will review successful startup growth strategies, their types, and, most importantly, the sequence of steps you should make to build your strategy from the ground up. Better sooner than later, any startup owner should consider a solid business strategy to present to potential investors. Although the global startup economy is still large ( $3 trillion in value ), many companies remain small and very few will achieve great success. Let’s face it right away: scaling a startup is a tough task to manage. The article was updated on January 29, 2021.
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