- Expansion is a process of redefining the business by enlarging the scope of business and increasing investment in the business.
- Growth strategy is enhancement of current existing business.
- Expansion strategy can be equated with dynamism, vigor, promise and success. An enterprise on the move is more dynamic rather an organization which is standstill.
- Expansion may take to relatively unknown and risky paths, full of promises and pitfalls.
Reasons for Growth/Expansion Strategy
- Risk– No risk no expansion. Company must expand to challenge all limiting belief.
- Environment– It may become imperative when environment demands increase in pace of activity.
- Set to greater control– Expansion may lead to greater control over the market vis-a-vis competitors.
- Challenging threat– Strategists may challenge threat and feel more satisfied with the prospects of growth from expansion.
Methods or ways of expansion
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