What is groth typology?

Growth typology is a framework that categorizes businesses or organizations into various types based on their growth pattern and goals. The concept was first introduced by Harvard Business School professor Raymond Miles in his 1978 book "Organizational Strategy, Structure, and Process". The typology has since been expanded and refined by other scholars and practitioners.

There are several different growth typologies, but the most commonly used one divides organizations into four types based on their focus and approach to growth:

1. Defender organizations: These are companies that focus on protecting their existing market position and maintaining their competitive advantage. They tend to invest heavily in product improvement and process efficiency to stay ahead of their competitors.

2. Prospector organizations: These organizations focus on exploring new markets and opportunities to expand their business. They are adventurous and take calculated risks to find new growth opportunities.

3. Analyzer organizations: These companies try to strike a balance between defending their existing market position and exploring new opportunities. They tend to adopt a more cautious approach than prospectors but are more flexible than defenders.

4. Reactor organizations: These companies do not have a clear growth strategy and tend to be reactive rather than proactive. They respond to changes in the market and their competitors, but often without a clear plan.

Understanding growth typology can help businesses identify their strengths and weaknesses and develop a growth strategy that aligns with their goals and resources. It can also help businesses understand their competitors and predict how they will respond to changing market conditions.