To push a business forward and make it better you require an evidently defined expansion strategy. Generally, every company faces many challenges that suppress their growth. Business growth/expansion is basically consists of developing the target market, contacting new supplier, establishing new manufacturing facilities, developing existing relationships with all relevant customers, marketing & sales strategy, technological innovation and financial strategy. Major aspects of business expansion strategy includes technology development, new product or services, new marketing channels, customer support, new distribution channels and new opportunities. We support in preparing the Business Expansion Strategy.
These strategies usually start by identifying & accessing the opportunities within your market. They go beyond your company/business and marketing plans, which provide the detail about how you’re going to meet definite business targets. There are many components to develop a successful Business Expansion Strategy. These components may be brand relevance & customer experience, value propositions & business growth steps, growing at a pace you can handle, thinking long term business growth and expanding into the new markets, new categories, and customer segments. Some of the key expansion strategies you can use to expand your business. These strategies include market development, market penetration, diversification, product or service expansion and acquisition. Market development expansion strategy involves selling your existing products/services to new markets. This expansion strategy carries a bit more risk than market penetration expansion strategy as the additional markets you target will be new to your company/business. Market penetration entails the selling more of your existing products/services in your existing market. This market penetration strategy helps to increase your market share. The diversification business expansion strategy involves developing a completely novel product and selling it to new market.
The product/services expansion strategy involves the creating & selling a new product or service to existing customers. Often, the innovative product or service is closely related to the products/services you currently offer. Business acquisition is a process of acquiring a company or organization to build on strengths or weaknesses of the acquiring company. Rising importance of Expansion Through Acquisition is established from the fact that it has decimated political & geographical boundaries and become an international phenomenon. Expansion Through Acquisition refers to the acquisitions of one organization by another. It can be merger and taking over of control. Expansion through acquisition is segmented into three areas, upstream, downstream, or lateral. In upstream acquisition area, a small company in order to ensure the market consolidation seek merger with the big company operating in the same field on the basis of certain conditions. The key objective of such merger is to secure employees, ensure better investment and strengthen the market forces. In this Expansion Through Acquisition strategy, policies made by the consent prevails and both work as one entity. In the downstream acquisition process, one organization acquires the other to expand its business. In such cases, a big company acquires the small ones. Additionally, Expansion Through Acquisition strategy also recognizes the lateral acquisitions. The aim of such merger is widespread objective to pool resources.
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Ankur Gupta, Head Marketing & Communications