Strategies of Business Expansion Part 1

Strategies of Business Expansion Part 1

• Category: Strategy of Business
• Date 23-10-2023

To expand business will need several steps. According to the business expert there are some things we need to do. It begin from buy new assets, recruit more sales team member,implement online advertising ( can be from google ads, fb or tik tok ads), improve the business by open the franchises model, go to new markets,provide customers with new from of products or services can be several great ways to expand your business more.Especially for online advertising lately. With the growth of technologies, the internet is one of main consumption by most people. So implementing online advertising using ads can be one of the best options to expand the business more. Lot business owners use ads to promote their social media or website in hope to gain more sales in the future. Some of them also use ads to make people know that their business line opens the franchise to get more revenue profit and invite people to develop the business.

According to business theory, there are 5 expansion strategies that the business owner can do to develop their business line. First, concentrate on their business. Two, make the business more integrated. The third one is that the business owner can diversify. The fourth one is the business needs to cooperate to collaborate with another type of business to complete their diversification. And the last business owner can go international with their business products by some strategies.

The people who do business expansion are commonly done by an organization who likes to achieve higher revenue than the past period. The organization aims to board the business in their groups to stay profitable, improve their business scale to grow, make their market size more develop and gain some profit benefit.First steps based on theory we can do expansion through concentration. These strategies can describe with these steps, concentration strategies existing product, existing market, existing product, new market and last steps new product and exciting market . In another word we can say the model is to attract new customers for the existing products and develop new products to their existing market.

The following strategy of business expansion is to expand the business from diversification. These strategies are conducted when the organization wants to develop new products into new markets. Business organizations implement this strategy expansion to face the downturn of the economy. On this type of expansion,we can recognize two types, first is concentric diversification and conglomerate diversification. First type concentric diversification occurs when the business organization wants to build new products or new services that have a correlation with their existing products. The concrete example may be seen when one of skincare production companies would like to introduce business products made aloe vera based to promote and acquire new consumers markets and gain the sales conversion.

On the other hand, the second type of expansion through diversification is conglomerate diversification, it occurs when a business organization wants to develop itself into another part of things that might not relate to the existing products or survive their offer before in their business.