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Additional Growth Opportunities

The hosting business is growing fastly, and new needs are emerging daily. The needs generate the further potential growth of hosting market.

Services – Additional Growth Opportunities

Additional Growth OpportunitiesHosting services classified as Shared Hosting, Reseller Hosting, Dedicated Hosting, Cloud Hosting and Other related hosting services or products. A big branded hosting company manages all the above services with separate strategy and staff. The different services become strategic business units (SBUs). Nowadays a hosting company provide all the hosting needs or work like single-stop shops.

The different hosting services have different target customers and different resource needs and competitors. Thus a company employs separate staff and managers for each service.

A big hosting company has separate planned strategies for each service. Thus a single hosting company consisting of related service businesses.

Importance of Each SBU – Additional Growth Opportunities

Each SBU has importance to the company. They might have lower revenues, but as customer needs grow, the next level SBU grab the customer. In hosting business shared hosting is the cheapest and hence most affordable to individuals and companies. Its prices attract the customers. The company goals to provide strong online presence. Since the service has a maximum number of customers, its human resource needs are also maximum. The shared hosting portfolio gives competitive advantage and attractiveness, as services are scalable and keep the hold of the customer as needs grow with a business.

Value to Company – Additional Growth Opportunities

Each SBU provides value to a company, if the profits are less than the overall shareholder's worth, the company need to re-think its strategy on it. The company considers its business potential and growth opportunities. It decides to downsize or terminate the services if the growth opportunities are negligible. Furthermore, can also plan new services by accessing the growth opportunities in that sector. Unless and unit there is acquisition, merger or new partnership, i.e., integrative opportunity, the hosting company has fixed growth.

The hosting company management identifies growth as internal as well as external. The marketing team identifies the further needs of existing customers, i.e., intensive opportunities. The external includes attracting new developing markets or independent businesses, i.e., diversification opportunities.

Intensive – Additional Growth Opportunities

Nowadays acquiring a new customer is costlier than retaining the existing ones. Hence, most hosting companies focus on accelerated growth by continuously improving the services, providing extra resources and best support services. They look for new technological developments, products, and services and detect the customer's needs on them. Also, create, launch and communicate new technologies, which could strengthen their core competency to master, leverage and satisfy the customer.

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