What are the three major reason to adopt expansion strategy?
Answers
Answer:
The Expansion Strategy is adopted by an organization when it attempts to achieve a high growth as compared to its past achievements. In other words, when a firm aims to grow considerably by broadening the scope of one of its business operations in the perspective of customer groups, customer functions and technology alternatives, either individually or jointly, then it follows the Expansion Strategy.
Explanation:
The reasons for the expansion could be survival, higher profits, increased prestige, economies of scale, larger market share, social benefits, etc. The expansion strategy is adopted by those firms who have managers with a high degree of achievement and recognition. Their aim is to grow, irrespective of the risk and the hurdles coming in the way.
Answer:
When a company tries to achieve a high level of growth in comparison to its previous achievements, it uses the Expansion Strategy. In other words, the Expansion Strategy is used when a company wants to expand significantly by broadening the scope of one of its business operations in terms of customer groups, customer functions, and technology options, either individually or jointly.
Explanation:
Survival, higher profits, increased prestige, economies of scale, larger market share, social benefits, and so on could all be reasons for the expansion. Firms that have managers with a high level of achievement and recognition use the expansion strategy. Their goal is to expand, regardless of the risks or obstacles that may arise.
Reason to adopt expansion strategy:
Market Percentage of the market that has been penetrated This strategy aims to boost sales of existing products or services on existing markets, thereby increasing your market share. Market expansion, Product development, and Diversification are all things that need to be considered. Survival, increased profits, increased prestige, economies of scale, larger market share, social benefits, and so on could all be factors driving the expansion. Firms with high-achieving and well-recognized executives use the expansion strategy.