Tuesday, 2 August 2016

Strategies companies can use to achieve expansion


Hello readers, today I will be looking at strategies you can use to expand your business. When you hear business expansion the first idea that might pop into your head is open a new branch in another location. Well, you are not far from the truth if that pops into your head, however, I will be giving  you other ideas

Diversify

A business can expand by making another product, it should be totally different from what it usually produces. However, it could be complimentary. That way you can attract more customers which will then help foster your business growth. Diversification also helps you minimize your business risks. Most market leaders employ diversification.

Franchise

Another way a business can expand is by providing franchises to individuals. Most fast food restaurants use that medium to expand their outlets and make money as it saves them from the cost they will incur if they decide to open another branch. A franchise is a situation whereby a business gives another (individual or business) a right to use its business model and its brand name. Way franchisors make money from their franchisees is by collecting a start up fee from them as well as a percentage of their gross sales which is usually between 3% to 10%. Sales of ingredients or the likes to franchisees is another way they make money.

Government

This is another means of expanding your business as the income from governmental contracts are always large. Once the income comes in you can use the money to open a new branch or start a new product. Having the government as a regular customer will help your business grow even better.

Influencers

This is another medium you can use to expand your business especially if you are just starting your business. You can tell a business leader you are familiar with to introduce your products to his/her clients. That is another way of making your business expand by telling others about it. The business leader you know already has a market and it won't cost the business leader anything to tell his/her customers about your products if you meet the needs of his/her customers.

Partnership/Ownership

The last method I will be writing about today will be the partnership/ownership. A company can be expanded by going into partnership with other companies, these companies may be abroad. A company can also buy up companies in order to expand. It could be a purchase of a company abroad so as to have access to their business market abroad easily. This strategy has been employed by Vodafone..

That is all for today, thank you for reading this article and keep checking out my blog regularly. Cheers!





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