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Meaning of Expansion Strategy or Growth Strategy

  1. Expansion is a process of redefining the business by enlarging the scope of business and increasing investment in the business.
  2. Growth strategy is enhancement of current existing business.
  3. 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.
  4. Expansion may take to relatively unknown and risky paths, full of promises and pitfalls.

Reasons for Growth/Expansion Strategy

  1. Risk– No risk no expansion. Company must expand to challenge all limiting belief.
  2. Environment– It may become imperative when environment demands increase in pace of activity.
  3. Set to greater control– Expansion may lead to greater control over the market vis-a-vis competitors.
  4. 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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