If the answer to the question ‘Should the company increase the level of activities in the current business and\/or enter new businesses)?’ is affirmative, a growth (expansion) strategy is called for.<\/h5>\n
The growth strategy amounts to redefining the business by adding new products\/services or new markets or by substantially increasing the current business.<\/h5>\n
A company pursues a Expansion Strategy(growth strategy) when:<\/h5>\n
1. It enters new business (including functions) or market.<\/h5>\n
2. Effects major increase in its current business.<\/h5>\n
A company may pursue either or both internal or external growth strategies.<\/h5>\n
Growth strategies are widely pursued strategies globally. The corporation can grow in diverse ways. Two basic growth strategies are concentration or intensification on the current products and business operations and diversification into other product lines and industries.<\/h5>\n
Concentration or Intensification<\/h3>\n
Managers use corporate-level strategy to recognize which industries their firm should compete in to maximize its long-run profitability.<\/h5>\n
For many firms, profitable growth and expansion often pursued or sought within a single market or industry over time.<\/h5>\n
Concentration or intensification strategy is the one in which organisation seeks growth by focusing on single line of business.<\/h5>\n
A company limits its business activities to just one business or industry.<\/h5>\n
Firm tries to use its specialized knowledge to build competitive advantage in that industry.<\/h5>\n
Example Of Concentration or Intensification<\/h3>\n
McDonald’s restricted itself to global fast-food restaurant business, Infosys remained focused on IT & ITES since its inception and Wal-Mart, with its focus on global discount retailing.<\/h5>\n
Staying in one industry allows a firm to concentrate its total managerial, financial, technological, and functional resources and capabilities on competing successfully in one business domain.<\/h5>\n
A second advantage of staying in a single industry is that a company stays focused on what it knows and does best. It does not make the mistake of entering new industries where its existing resources and capabilities generate little value.<\/h5>","protected":false},"comment_status":"open","ping_status":"closed","template":"","class_list":["post-35086","lesson","type-lesson","status-publish","hentry"],"yoast_head":"\nLesson 3: Expansion Strategy (Growth Strategy) - Certifeka-edu<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/certifeka-edu.com\/ar\/programs\/sample-course\/lessons\/lesson-3-expansion-strategy-growth-strategy-2\/\" \/>\n<meta property=\"og:locale\" content=\"ar_AR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lesson 3: Expansion Strategy (Growth Strategy) - Certifeka-edu\" \/>\n<meta property=\"og:description\" content=\"Lesson 3: Corporate Strategy – Part Two 2. 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