STRATEGIC MANAGEMENT

1. EXPANSION STRATEGY
ARUNA
MHA

2. EXPANSION STRATEGY
•Expansion strategies are designed to allow enterprises to
maintain their competitive position in rapidly growing national
and international markets.
•Expansion Strategy provide a blue print for business enterprises
to achieve their long term growth objectives.

3. REASON TO PURSUE EXPANSION STRATEGY
EXPANSION
STRATEGY
Employee
Satisfaction
Create
Strength
Necessary for
Survival
Increased
Productivity

4. TYPES OF EXPANSION STRATEGY
1.Concentration
Strategy
2.Integration
Strategy
3.Diversification
Strategy
4.Internationalisation
Strategy
5.Cooperation
Strategy

5. CONCENTRATION STRATEGY
Concentration strategies are also known as Intensive Strategies.
The aim of intensive strategies is to broaden the market share
and to increase the profit by making the existing product more
effective and by introducing new and various set of products in
order to increase the market share too.
It is play an important role in increasing the revenue as well as
sales of any organizations.

6. TYPES OF CONCENTRATION STRATEGY

7. Advantages of Concentration Strategy
i. Concentration involves fewer organizational changes.
ii. It is less threatening and more comfortable staying with present
business.
iii. It also enables the company to specialize by gaining an in-depth
knowledge of this business and thus master the knowledge.
iv. The decision-making has a high level of predictability.
v. Past experience is valuable as it is replicable.

8. Disadvantages of concentration strategy
Concentration Strategies are heavily dependent on the industry ,
so adverse conditions in an industry can also affect companies if
they are intensely.
Factors such as product obsolescence , flickness of markets, and
emergence of newer technologies can be threats.
Doing too much of a known thing may create an organizational
inertia ; managers may not be able to sustain interest and find the
work less challenging and less stimulating.

9.  Concentration strategies may lead to cash flow problems
that may pose a dilemma before a company.