Skip to main content

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!





Comments

Popular posts from this blog

Work-life balance: all should attain it

Hello readers, today I will be writing about work-life balance. According to businessdictionary.com, work-life balance "is a comfortable state of equilibrium achieved between an employee's primary priorities of their employment position and their private lifestyle." All work and no play makes Jack a dull boy, thus, you should find a balance between work and play. Here are some tips to help you achieve it.
1. Do not check your email (work) after working hours, this will help improve the quality of time you spend with your family and friends. Thus, you should not be distracted by work when spending time with your family and friends. 
2. When you decide to improve the situation of your work life balance, take it one step at a time. For example if you do not get to spend time in the evenings with your family during the week days due to coming back late from work, you should decide to spend one day a week and gradually increase it to two and then three till you get to spend the…

Eid Mubarak

The world of competence

Hello readers, it has been a while. Hope you did not miss me much, the good news is I am back now. Today, I will be writing about competence.
Competence is the ability that enables a company or an individual to deploy its resources effectively. It is neccessary for a company to have a competence target in all its business activities so as to deliver value to its customers. This will help create a competitive advantage for the company.
Competencies must provide value to customers. It must be unique or able to develop greatly or be better than that of competitors. New products and services must be able to be developed as a result of the competence. It must be difficult for other competitors to obtain or imitate.
Continually producing high quality products can make a company become a market leader (which is a core competence) as it provides a company with a competitive advantage. With high quality, higher prices can be demanded by the company from customers and the company will also be able…