What risks are associated with pursuing a high-growth strategy in BSG?

Pursuing a high-growth strategy in the Business Strategy Game (BSG) involves significant risks, particularly higher operating costs and the potential for market overreach. When a company aggressively aims for growth, it often invests heavily in expanding its operations, which can lead to increased expenses. These operating costs might arise from hiring additional staff, investing in more production capacity, or enhancing marketing efforts to gain market share.

Additionally, as a company expands rapidly, there is a risk of market overreach, where the firm may enter new geographical markets or product lines without adequate preparation or understanding of local demands and competitive dynamics. This can lead to misaligned product offerings or ineffective marketing strategies, resulting in wasted resources and poor financial performance.

In contrast, a decrease in competition in the market typically accompanies a high-growth strategy if executed correctly, but it is not guaranteed and depends on various factors, including industry dynamics and competitive responses. Stronger customer loyalty is often a result of a well-executed growth strategy, but it can take time to build and is not inherently part of the growth process itself. Lower investment costs are not associated with high growth; rather, increased growth usually necessitates significant investment. Thus, the identification of higher operating costs and market overreach