Question

When does a firm pursues to expansion strategy?

Answer 1

An expansion strategy is a strategy that a firm pursues:

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