Topic-Expansion

strategy and Issues

A presentation by :- D Shravan Kumar

19BTA0109
What is Expansion Strategy?

The Expansion Strategy is adopted by organization

when
• To acheive high growth and sustainability boardening
• Aim at significant growth
• Focus more on Exponential growth rather than
Incremental growth
 Concentration Strategy
• Also known as Intensive strategy
• This demand for intensive efforts to improve performance of
existing products market.
Types are:-
• Market Development
• Market penetration
• Market production
Examples for concentration strategies are
Expansion through Diversification
Followed when an organization aims at
• Changing business definition
• Developing a new product or expanding into a new market
• Generally, the diversification is made to set off the losses of
one business with the profits of the other.
Eg:-Amazon,ITC,TATA, Reliance industries.
Expansion through Integration
• Combining one or more present operations of the business
with no change in the customer groups.
• This combination can be done through a value chain.
• A firm may move up or down the value chain to focus more
comprehensively on the needs of the existing customers.
Eg:-Jio, Airtel.
The Expansion through Cooperation
• Followed when an organization enters into a mutual agreement with
the competitor .
• Merger: The merger is the combination of two or more firms
wherein one acquires the assets and liabilities of the other.
Eg:- VI,Banks Nationalisation
• Takeover: In this, one firm acquires the other in such a way,
that it becomes responsible for all the acquired firm’s
operations.
Eg:- Air India,Tata
• Joint Venture: Under the joint venture, both the firms agree
to combine and carry out the business operations jointly.
Eg:- DRDO,AAI
Strategic Alliance:- the firms unite or combine to perform a set of
business operations, but function independently and pursue the
individualized goals.
Eg:- SIT and Pfizer
Expansion through Internationalization
• It aims to expand beyond the national market
• Enough potential to expand with basic sustainability.
• Its not an easy task and should stick to laws of country.
• India has more imports than exports.
Eg Rolls Royce,Oppo, Raymond’s, Jaguar,Tata group
 Issues
Risks To Your Supply Chain
Talent Acquisition and Onboarding
Compliance Issues
• New Market Competition