Question
When does a firm pursues to expansion strategy?
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Answer
An expansion strategy is a strategy that a firm pursues:
- Additional Product: It serves the public in additional product or service or adds markets of functions to its definitions.
- Growth: The growth is fast in the market in which their products are sold.
- More profit margin: They tend to have larger than average profit margins.
- Stretch: A stretch rather than a fit strategy is pursued.
- New users, etc: New markets, new products, new processes and new usage for old products are regularly developed.
- Expansion: Internal expansions, mergers and acquisitions are used to achieve expansion.
- Globalisation: Shifting from local to global markets is an expansion sign.
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