Business Growth: A Guide to Layering the Cake | How to Grow New User Sign-ups on Android

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Sep 24, 2023
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Business Growth: A Guide to Layering the Cake | How to Grow New User Sign-ups on Android
One of the most important jobs of a CEO is to aggressively define and pursue a growth agenda for his or her business. Virtually all businesses, even hyper-growth ones, inevitably experience slower growth as they get larger, with their growth rates falling relentlessly back down to Earth over time. This effect is often referred to as "gravity" and can weigh down even the most promising of companies unless a CEO can find a way to accelerate growth and positively change the long-term growth trajectory of the business.
To combat the effects of gravity and accelerate growth, CEOs can take various approaches. One strategy is to focus on product innovation. By continuously adding new and innovative features to the core business, companies can attract new users and drive growth. For example, eBay implemented the concept of offering items for a fixed price, which they termed "buy-it-now." This innovation complemented their existing auction format and became a significant driver of growth for many years.
Another approach to accelerating growth is by layering new initiatives on top of the core business. This concept, often referred to as "adding layers to the cake," involves introducing new, complementary businesses that bring something new to the table. eBay's buy-it-now, stores, features, checkout, and PayPal integration were all new initiatives that layered on top of their core auction business but added something new to it. This layering strategy helped eBay fight off the impact of gravity for a decade.
Similarly, other successful companies have embraced the concept of layering. At PayPal, key layers included international expansion, improving PayPal's offerings for merchants outside of the eBay platform, and offering credit on top of their payments business. OpenTable introduced layers such as building mobile applications, expanding internationally, introducing a new "Connect" product, and developing yield generation products. Apple added layers on top of their core business of computers, including the iPod, iTunes, the iPhone, and the iPad. Amazon innovated beyond their core merchandise business, adding layers such as Prime, digital goods, Amazon Web Services, and digital devices like the Kindle and Fire.
These examples demonstrate that innovation is the key to success on the internet. Companies that invest in product innovation, create cultures that support it, and prize and reward it are the ones that emerge as dominant players in their respective industries. The best innovations improve and complement the core business, leveraging its most valuable assets. Straying too far from the core in innovation increases the odds of failure.
For CEOs, it is crucial to rise above the day-to-day requirements and keep their vision far out on the horizon. By proactively delivering new innovations today that have the potential to boost long-term growth, CEOs can ensure the success and sustainability of their businesses.
Actionable Advice:
- 1. Embrace product innovation: Continuously invest in developing new and innovative features for your core business to attract new users and drive growth.
- 2. Implement layering strategies: Introduce new initiatives and complementary businesses that add something new to your core business, creating additional layers of growth.
- 3. Focus on core strengths: While it is important to innovate and explore new opportunities, always leverage your core strengths and assets. Straying too far from the core increases the odds of failure.
In conclusion, achieving business growth requires a proactive and innovative approach. CEOs must constantly seek ways to accelerate growth, combat the effects of gravity, and positively change the long-term growth trajectory of their businesses. By embracing product innovation, implementing layering strategies, and leveraging core strengths, CEOs can drive sustainable growth and ensure the success of their businesses in the long run.
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