Expansion

Means extending or enlarging business activities. It is a phase in which a company generates its highest profits, achieves stability, and seeks opportunities to generate even more profit – via expansion. The objective is to make a product or service available on new domestic or foreign mar-kets. In an ideal scenario, expansion should lead to an increase in the customer base, which results in higher sales revenues and higher profits. Expansion can be done in three ways:

1. Adapting existing products or services for wider application;
   
2. Launching existing products or services at an international level; or
3. Adding a new product or service to the existing portfolio.

When making a decision to expand to new markets, it is essential to consider the strategy to be applied, external and internal risks, opportunities, and also strengths and weaknesses, e.g. by performing a SWOT analysis.

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